**Exercise-1: Computation of simple and compound interest**

# Capital budgeting techniques

## [Exercises]

**Exercise-2: Computation of present value of a single sum**

**Exercise-3: Computation of present value of an annuity**

**Exercise-4: Net present value (NPV) method with uneven cash flows**

**Exercise-5: Present value index (PVI) for ranking investment proposals**

**Exercise-6: Net present value (NPV) with unequal proposal lives**

**Exercise-7: Payback period method in cost-cutting project**

**Exercise-8: Payback period with uneven cash flows**

**Exercise-9: Accounting rate of return (ARR) in a cost-cutting project**

**Exercise-10: Payback period method with salvage value**

**Exercise-11: Internal rate of return (IRR) method with even cash inflow**

**Exercise-12: Accounting or simple rate of return method with salvage value**

**Exercise-13: Accounting rate of return (ARR) with uneven cash flows**

**Exercise-14: Accounting rate of return (ARR) using average investment**

**Exercise-15: Comparison of two projects using net present value (NPV) method**

**Exercise-16: Net present value (NPV) analysis of two alternatives**

**Exercise-17: After-tax cash flows in net present value (NPV) analysis**

**Exercise-18: Tax savings from depreciation tax shield**

**Exercise-19: After-tax cost computation**

**Exercise-20: Payback and accounting rate of return method**

**Exercise-21: Net present value (NPV) method with income tax**

**Exercise-22: Net present value (NPV) computation with working capital**

**Exercise-23: Discounted payback period method**

**Exercise-24: Preference ranking of investment projects**

**Exercise-25: Internal rate of return (IRR) and net present value (NPV) methods**

**Exercise-26: Net present value (NPV) analysis with inflation**

**Exercise-27: Net present value (NPV) analysis – total and incremental cost approach**

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