Capital budgeting assignment help

1
Capital Budgeting Assignment Help
2

• One of the toughest accounting assignment
  help is capital budgeting assignment help.
  Capital budgeting is the most important
  instrument in corporate finance to determine
  whether a companys long term investments are
  worthwhile or not. It is also known as investment
  appraisal and large corporations often use it in
  order to allocate resources for upcoming projects
  and find out values of current projects. Further
  the dividends paid to the shareholders are also
  determined by capital budgeting analysis methods.

3

• Students needing capital budgeting assignment
  help can now get capital budgeting analysis
  help, capital budgeting decision help,accounting
  assignment help, cash flow analysis help, cash
  flow report help, budgeting help and capital
  budgeting method help online through
  MyAssignmenthelp.com.

4
Methods of capital budgeting
5

• There are many formal methods which are used for
  capital budgeting. The chief methods of capital
  budgeting are the following. Students
  needing capital budgeting assignment help must
  memorize them
• Accounting rate of return
• Payback period
• Profitability index
• Net Present value
• Internal rate of return
• Modified Internal rate of return
• Real options valuations
• Equivalent annuity method

6
Accounting rate of return

• Students needing capital budgeting assignment
  help have to reckon with accounting rate of
  return. Accounting rate of return is the rate of
  return from the net income of the proposed
  capital investment. It is given by the following
  formula
• Average return during period
•                                     
• Average investment
• Here average investment refers to the average
  amount of capital spent for project and is given
  by the following formula
• Book value at the beginning of year 1 book
  value at the end of useful life
•                                                 
                                                 
                                                
•                                                   
      2
• So suppose a company declares its accounting rate
  of return to be 7 percent then it means that the
  shareholders would get seven cents out of every
  one dollar of investment. This is a short
  description of accounting rate of return. For
  more on capital budgeting analysismethods, log on
  to MyAssignmenthelp.com.

7
Payback period

• Payback period is the second most important
  method to decide upon shareholders dividend. It
  is also important for students needingaccounting
  assignment help online. It refers to the period
  of time that is necessary to recoup all the
  investments made on the project and reach a
  break-even point. It, however, should be noted
  here that the time value of the capital invested
  is not taken into account. Only the time to pay
  back the capital itself is taken into account. So
  if the proposed project has a total capital
  investment of 10,000 and returns are 5000 per
  year, then the payback period would be two years.
  There are several major limitations of payback
  period. For instance, it does not take into
  account the costs of risk taken, the time value
  of the money and the opportunity cost. However,
  because of its simplicity, it is widely used by
  business enterprises. If this capital budgeting
  method help is not clear to you and you want to
  know more on the other methods of capital
  budgeting then log on to our website.

8
Profitability index

• Profitability index is the ratio of the payback
  to the investors divided by the investment made.
  It is important for students who needhelp with
  budgeting. It is given by the following formula
• P.I. PV of cash flows
•          Initial Investment
• Here P.I. Profitability index and
• P.V. Present Value
• Profitability index is particularly helpful in
  quantifying the amount of value for each proposed
  investment and rank all the investments according
  to their values. For more on accounting
  assignment help, log on to MyAssignmenthelp.com

9
Net present value

• Net Present Value (NPV) is the sum total of all
  the cash flow values, both incoming and outgoing
  for each project. It is an important part
  of capital budgeting assignment help material.
• Each potential project's value is estimated using
  a discounted cash flow (DCF) valuation to find
  its net present value (NPV). This valuation
  requires estimating the size and timing of all
  the incremental cash flows from the project.
  These future cash flows are then discounted to
  determine their present value. These present
  values are then added up to get the NPV.
• The NPV is greatly affected by the discount rate,
  so selecting the proper rate sometimes called
  the hurdle rate is critical to making the right
  decision. The hurdle rate is the minimum
  acceptable return on an investment. It should
  reflect the risk factor of the investment
  typically measured by the volatility of cash
  flows and must take into account the financing
  mix. Managers may use models such as the CAPM or
  the APT to estimate a discount rate assignment
  help appropriate for each particular project and
  use the weighted average cost of capital (WACC)
  assignment help to reflect the financing mix
  selected. A common practice in choosing a
  discount rate for a project is to apply a WACC
  that applies to the entire firm, but a higher
  discount rate may be more appropriate when a
  project's risk is higher than the risk of the
  firm as a whole. For more on NPV for capital
  budgeting analysis help, log on to
  MyAssignmenthelp.com.

10
Internal Rate of Return

• A rate of return in finance especially corporate
  finance is the rate of profit on a project.
  Internal rate of return (IRR) is the discount
  rate often used in capital budgeting
  decision that makes the present value of all cash
  flows from a particular project equal to zero or
  in other words IRR is that rate where the
  investments behind a project reaches a breakeven
  point. IRR is often used to rank projects of
  investments and the project with the highest IRR
  is often used first. For capital budgeting
  decision help, Myassignmenthelp gives you
  great capital budgeting assignment help.

11
Modified Internal Rate of Return

• As the name suggests, Modified Internal Rate of
  Return is a modified version of IRR. One short
  coming of IRR is that it is often used to
  calculate the actual annual profitability of a
  project. However intermediate cash flows are
  never taken into account. As such the actual IRR
  is lower than what is calculated. Hence, MIRR is
  used in the place of IRR. In fact most the
  companies now prefer to use MIRR in the place
  both NPV and IRR. Whether you are researching on
  MIRR or NPV and IRR, Myassignmenthelp gives you
  great accounting assignment help.

12
Real Options Valuation

• Capital budgeting assignment help is also
  concerned about Real Options Value. Real options
  analysis or real options valuation is another
  important method of capital budgeting. Real
  options are the types of options available to the
  investors that open up with each possible capital
  investment. They may be options to expand or
  options to cease if certain risk factors arise.
  They are often called real because these
  options relate to tangible assets of the company
  including equipments and land rather than those
  relating to intangible assets. For the nest
  capital budgeting analysis methods log on to
  Myassignmenthelp.

13
Equivalent Annual Annuity

• Capital budgeting assignment help requires
  knowledge of Equivalent Annual Annuity.
  Equivalent Annual Annuity (EAA) is another poplar
  approach to calculate the annual cash flow
  generated by a project as if it was an annuity
  (an annuity is financial product that is designed
  to accept funds from an individual and upon
  annuitization, pay out a stream of payments to
  the consumer). Calculating the EAA is the
  following
• Calculate each projects NPV.
• Calculate that projects EAA, so that each
  annuity is exactly equal to that projects NPV.
• Finally compare the EAAs of the tow project and
  chose one with the higher EAA.
• These are some of the methods involved in capital
  budgeting. Capital budgeting has become
  increasingly important since huge sums of money
  are involved nowadays. Once the investment is
  made it cannot be reversed so it is better to
  weigh all the options before investing. Finally
  investment decisions are important for they
  decide the capital gains of the project. For more
  on capital budgeting assignment help, capital
  budgeting analysis help, capital budgeting
  decision help, accounting assignment help log on
  to Myassignmenthelp.

14
How can Myassignmenthelp.com help students in
writing on topics of finance and accounting?
15

• Finance and accounting are important areas of
  management studies along with Human Resources
  Management and Marketing. If you need capital
  budgeting assignment help, capital budgeting
  analysis help or capital budgeting decision help,
  you can log on to our website. Our team
  of assignment expert capital budgeting assignment
  help providers is adept at providing quality help
  to all sorts of students. Our students are from
  various universities. We have a wide domain
  expertise. It includes capital budgeting
  assignment help, capital budgeting analysis help,
  capital budgeting decision help, cash flow
  analysis help and cash flow report help. You can
  submit your assignment online and get free
  capital budgeting assignment help quotes.
  Our accounting assignment help service has
  friendly staff.