Title: Analytical Techniques for Capital Investment Decisions Time Value of Money Techniques: 1. Net Present Value (NPV) – This technique takes into account the time value of money by discounting future cash flows to their present value. It

Capital investment decisions are based on accurate analysis of cash flows in a business. Managers can choose from several analytical techniques to analyze cash flows. Some techniques take into account the time value of money and some do not.
Respond to the following in a minimum of 175 words:
Briefly describe 2 analytical techniques based on the time value of money concepts.
Briefly describe 2 analytical techniques which are not based on the time value of money concepts.
Describe what you consider to be the top 2 advantages and 2 disadvantages of each technique and provide an example to support your top advantage of each method.

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