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hi,
Could you send me theories, problems and solution of capital budgeting?

Hello friend,

Capital budgeting is all about determining the feasibility of a project and then suggesting the best project out of the available alternatives.

Here are so many techniques for the calculation purpose for feasibility
1.Pay back period
2.Accounting rate of return
3.profitability index
4.Internal rate of return
5.Equivalent annuity
5.Net present value

In most of the problems, two or more number of projects and their past performance in the past years was given. And you are required to know which one will be the best for future by these techniques

hello friend

the information you asked can be get in the following book

the management theory - of aryasri

all the best

~aditya~

i need some problem and solution of capital budgeting for practice in pdf format.

A.B.C. company has currently an ordinary share capital of Rs. 25 lakhs, consisting of 25000 shares of Rs. 100 each. the management is planing to raise another Rs. 20 lakhs to finance a major programme of expansion through one of four possible financial plans. the options are-
a) Entirely through ordinary share.
b) Rs. 10 lakhs through ordinary shares and Rs. 10 lakhs through long-term borrowings at 8% interest per annum.
c) Rs. 5 lakhs through ordinary shares and Rs. 15 lakhs through long-term borrowings ay 9% interest per annum.
d) Rs. 10 lakhs through ordinary shares and Rs. 10 lakhs through preference shares with 5% dividend.
The company`s expected earnings before interest and taxes will be Rs. 8 lakhs. Assuming a corporate tax rate 30%, determine the earning per share in each alternative and comment which alternative is best and why?

hello friend

the information you asked can be get in the following book

the management theory - of aryasri

all the best

hello friend

the information you asked can be get in the following book

the management theory - of aryasri

all the best

Originally Posted by Unregistered

hi,
Could you send me theories, problems and solution of capital budgeting?

Capital Budgeting ::

-->> Capital Budgeting is long term planning for making and finance proposed outlays .

Theories ::

• Importance of Capital Budgeting
• Need for Capital Budgeting
• Method of Capital budgeting
• Difficulties of Capital budgeting
• Significance of Capital Budgeting

Problems ::

• Payback Period method(PBPM)
• Accounting Rate of Return OR Average Rate of Return(ARRM)
• Net Present Value Method(NPVM)
• Internal Rate of Return Method(IRRM)
• Probability Index Method(PIM)

problems of capital budgeting in india