Capital Budgeting Techniques for Forestry: A Review
James C. Fortson, Richard C. Field
Abstract
James C. Fortson, Richard C. Field
Abstract
Abstract The key steps in the financial analysis of proposed capital expenditures are presented as well as the conditions under which the net present value or internal rate of return is the appropriate decision criterion. Factors which affect the choice of the discounting interest rate for cash flows are also reviewed.
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Abstract The key steps in the financial analysis of proposed capital expenditures are presented as well as the conditions under which the net present value or internal rate of return is the appropriate decision criterion. Factors which affect the choice of the discounting interest rate for cash flows are also reviewed.
Key concepts: Capital budgeting, Discounting, Internal rate of return, Net present value, Modified internal rate of return, Cash flow, Present value, Rate of return