Capital Budgeting

Capital Budgeting

Capital tasks with no usual money flows have a large money outflow either one time throughout or at the end of their lives.  A widespread difficulty came across when assessing tasks with no usual money flows is multiple IRRs.  A task has usual money flows if one or more money outflows (costs) are pursued by a sequence of money inflows.

The obstacle rate is the task cost of capital, or discount rate.  It is the rate utilized in discounting future money flows in the NPV procedure, and it is the rate that is in evaluation to the IRR.

The numbers of ...