- Payback period: which measures the time required for the cash inflows to equal the original outlay. It measures risk, not return.
- Cost-benefit analysis: which includes issues other than cash, such as time savings.
- Real option method: which attempts to value managerial flexibility that is assumed away in NPV.
- Internal rate of return: which calculates the rate of return of a project while disregarding the absolute amount of money to be gained.
- Modified Internal Rate of Return|Modified internal rate of return (MIRR): similar to IRR, but it makes explicit assumptions about the reinvestment of the cash flows. Sometimes it is called Growth Rate of Return.
- Accounting rate of return (ARR): a ratio similar to IRR and MIRR
You are here
Home » Principles of Finance » The Time Value of Money » The Present Value of Money, Net Present Value and Discounting
Alternative capital budgeting methods
- Front Matter
- Body Matter
- Back Matter