Grooming Education Academy's video: Capital Budgeting CA Inter CA IPCC B com M com CS CMA UGC-NET Financial Management

In this Video We Will Discuss Capital Budgeting all Concepts, Problems and Examples for CA Inter & CA IPCC and This Video will also Helpful for B.com, BBA, M.com, CS, CMA, and UGC-net, UPSC, SSC, Banking, PNB SO, JAIIB AFB and Other Commerce Courses. 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐮𝐫𝐬𝐞 https://www.escholars.in/s/store/courses/description/CA-Inter-Financial-Management--Economics-for-Finance-Copy 𝐁.𝐜𝐨𝐦/𝐁𝐁𝐀 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐮𝐫𝐬𝐞 https://www.escholars.in/s/store/courses/description/Financial-Management--Economics-for-Finance-Copy Watch Next: ◍ Issue of Shares Chapter in Single Video https://youtu.be/7BE46r4ghso ◍ Rectification of Error Complete Chapter https://youtu.be/l247jJ4Mzuc ◍ Overhead Costing Complete Chapter https://youtu.be/oaXYMEQHFBU Topic covered:- 00:00 Introduction. 00:24 What is the purpose of capital budgeting? 03:41 Relative Manner. 11:40 Present value formula. 20:51 How to calculate PV factor. 29:47 Computation of Inflow. 40:09 In case inflows of all the year are same. 44:14 Practice Questions. 01:01:27 Important Questions. 01:14:24 Profitability Index. 01:18:57 Practice Question of profitability index. 01:20:45 Internal rate of return. 01:28:12 Examples. Topic Covered: Absolute comparison What is the present value and how to compute it Example to understand concept of present value part 1 Example to understand concept of pv factor part 2 What is net present value How to compute inflows Numerical on cash inflows Question on NPV Question on NPV self practice Important numerical of NPV Profitability index Question on profitability index What is internal rate of return (IRR) Relationship between IRR and NPV How to compute internal rate of return Question on internal rate of return Question on internal rate of return Combined question on NPV and internal rate of return Combined question of NPV and IRR very important Payback period Discounted pay back period Accounting rate of return Modified internal rate of return Capital rationing projects with different investment amount Projects with unequal lives replacement chain method Projects with unequal life equivalent annualized cash flows very important Capital budgeting is the process that a business uses to determine which proposed fixed asset purchases it should accept, and which should be declined. This process is used to create a quantitative view of each proposed fixed asset investment, thereby giving a rational basis for making a judgment. Capital Budgeting Methods There are a number of methods commonly used to evaluate fixed assets under a formal capital budgeting system. The more important ones are: Net present value analysis. Identify the net change in cash flows associated with a fixed asset purchase, and discount them to their present value. Then compare all proposed projects with positive net present values, and accept those with the highest net present values until funds run out. Constraint analysis. Identify the bottleneck machine or work center in a production environment and invest in those fixed assets that maximize the utilization of the bottleneck operation. Under this approach, a business is less likely to invest in areas downstream from the bottleneck operation (since they are constrained by the bottleneck operation) and more likely to invest upstream from the bottleneck (since additional capacity there makes it easier to keep the bottleneck fully supplied with inventory). Payback period. Determine the period required to generate sufficient cash flow from a project to pay for the initial investment in it. This is essentially a risk measure, for the focus is on the period of time that the investment is at risk of not being returned to the company. Grooming education academy is engaged in providing qualitative commerce education to society at concessional prices. We believe in Research, reasoning and result and thus our learners admit our USP of: "Pioneer in developing concepts". We provide the complete tutorials for all commerce courses including CA, CS, CMA, BCom, BBA, Mcom, MBA, M.com, Class 12, Class 11 and other commerce courses. To know about the courses and books that best suits your requirement call at our helpline number: 𝟖𝟖𝟖 𝟖𝟖𝟖 𝟎𝟒𝟎𝟐 𝐕𝐢𝐬𝐢𝐭 𝐎𝐮𝐫 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 to know more about the courses available: https://www.escholars.in/ 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐀𝐩𝐩 for getting latest updates regarding new courses and Video Updates: http://tiny.cc/w02t7y (Available on Google Play Store and App Store as Well) 𝐉𝐨𝐢𝐧 𝐨𝐮𝐫 𝐭𝐞𝐥𝐞𝐠𝐫𝐚𝐦 𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐟𝐨𝐫 𝐝𝐚𝐢𝐥𝐲 𝐮𝐩𝐝𝐚𝐭𝐞𝐬:::: https://t.me/geacp 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐏𝐚𝐠𝐞: https://www.facebook.com/GroomingEducationAcademy/ 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦 𝐏𝐚𝐠𝐞: https://www.instagram.com/groomingeducationacademy/ 𝐏𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐏𝐚𝐠𝐞: https://in.pinterest.com/groomingeducation/ -NET