# 7 Capital Budgeting Techniques Pay Back and ARR

7. Capital Budgeting - Payback and ARR Method
Caption: Financial management involves managing a company's financial resources. Capital budgeting is the process of evaluating long-term investment decisions, and two methods used are payback and accounting rate of return (ARR). The payback method measures the time required to recover the initial investment, while the ARR method measures expected profitability. Payback is useful for projects that require a quick return on investment, while ARR is more appropriate for projects that generate long-term benefits.
Keywords: Financial management, Capital budgeting, Payback method, Accounting rate of return method, Long-term investment decisions, Initial investment, Time value of money, Cash inflow, Average annual profit, Quick return on investment, Long-term benefits.
1. Introduction
• #1 Financial Management
2. Time Value of Money - Compounding Techniques
• #2 Time Value of Money...
3. Time Value of Money - Discounting Techniques
• #3 Time Value of Money...
4. Time Value of Money - Monthly / Quarterly Discount | Perpetuity | Annuity Due
• #4 Time Value of Money...
5. Capital Budgeting - Accounting Profits vs Cash Flow | Depreciation and Cash Flow | Effect of loss on Cash Flow
• # 5 Capital Budgeting ...
6. Capital Budgeting - Types of Projects | Cash Flow : Outflow and Inflow | Working capital as Inflow and Outflow
• # 6 Capital Budgeting ...
7. Capital Budgeting - Payback and ARR Method
• # 7 Capital Budgeting ...
8. Capital Budgeting - Net Present Value Method
• # 8 NPV Capital Budgeting
9. Capital Budgeting - Profitability Index Method
• # 9 Profitability Index
10. Capital Budgeting - IRR - Internal Rate of Return
• #10 Internal Rate of R...
11. WACC Fundamental - Cost of Capital
• #11 WACC Cost of Capit...
12. Kd Cost of Debt - Cost of Capital
• Lesson 12 Cost Of Debt...
13. Kp and Ke - Cost of Preference and Equity Share Capital - Cost of Capital
• Lesson 13 II Cost of P...
14. WACC Problem Sum - Cost of Capital
• Lesson 14 Cost of Capi...
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Capital Budgeting PAYBACK AND ARR Method
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