Capital budgeting techniques - exercises | Accounting For Management

Exercise-1 (Computation of simple and compound interest)

Exercise-2 (Computation of present value of a single sum )

Exercise-3 (Computation of present value of an annuity)

Exercise-4 (Net present value method – uneven cash flows)

Exercise-5 (Present value index – ranking investment projects)

Exercise-6 (Capital budgeting with unequal proposal lives)

Exercise-7 (Payback period method- even cash flows)

Exercise-8 (Computation of payback period – uneven cash flows)

Exercise-9 (Computation of accounting rate of return – cost reduction project)

Exercise-10 (Payback period method with salvage value)

Exercise-11 (Internal rate of return method – cash inflow)

Exercise-12 (Accounting/simple rate of return method with salvage value)

Exercise-13 (Accounting rate of return – uneven cash flows)

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

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

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

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

Exercise-18 (Tax savings from depreciation tax shield)

Exercise-19 (After-tax cost computation)

Exercise-20 (Payback and accounting rate of return method)