Capital Budgeting
Calc
Discounted Payback
The time to recover the initial investment using present-value-adjusted cash flows.
Capital Budgeting
Calc
IRR
The discount rate at which a project's net present value equals zero.
Capital Budgeting
Calc
MIRR
An improved version of IRR that uses separate rates for financing costs and reinvestment returns.
Capital Budgeting
Calc
NPV
The sum of all discounted future cash flows from a project minus the initial investment.
Capital Budgeting
Calc
Payback Period
The time it takes for a project to recover its initial investment from undiscounted cash flows.
Capital Budgeting
Calc
Profitability Index
The ratio of the present value of future cash inflows to the initial investment cost.