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The method provides correct rankings of mutually exclusive projects, when the firm is not subject to capital rationing.

 

net present value

 

internal rate of return

 

payback period

 

profitability index

 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/04/02
Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

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Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

net present value

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Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>>>>>> net present value

 

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

NPV is the primary decision making factor for project financing. So, Capital rationing is one of the depending factors of NPV.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

>>>>>>>>>>>>>>net present value

Net Present Value The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. 

 

The following is the formula for calculating NPV: 

Net Present Value (NPV)

where:

Ct = net cash inflow during the period

Co= initial investment

r = discount rate, and

t = number of time periods 

The Correct answer is  Net Present Value

Thanks to experts 

Well answers 

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

NPV is the correct answer

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

d-----------------

profitability index

My answer is option (A) Net Present Value

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

net present value   is correct answer ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,....................,,,,,,,,,,,,,.......

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