Capital Budgeting - FULL EXAMPLE | Investment Appraisal | NPV

In this lesson, we explain Capital Budgeting and go through a thorough Example of Capital Budgeting (Investment Appraisal). In the example, we explain how to account for items such as Sunk Costs, Head Office Costs, Past Feasibility Study Costs, Employee Salary Costs, Salvage Value/Recoupment, Wear and Tear Allowance, Tax Shield or Tax Saving On Depreciation, Tax on Salvage Value, After-Tax Salvage Value and many more. We also explain what you do with a Bank Loan and its Interest Expense when dealing with Capital Budgeting/Investment Appraisal.
We show how to discount cash flows in calculating the Net Present Value (NPV) using the Weighted Average Cost of Capital (WACC).

Relevant Costs Explained:    • Relevant Costs | Explained with Examp...  

Salvage Value & Wear and Tear Explained with EXAMPLES | CAPITAL BUDGETING:    • Salvage Value & Wear and Tear Explain...  

NPV (Net Present Value) Using Financial Calculator | Sharp EL-738:    • NPV (Net Present Value) Using Financi...  `

Net Present Value (NPV) Calculation Example Using Table:    • Net Present Value (NPV) Calculation E...  

IRR (Internal Rate of Return) Explained with Example:    • IRR (Internal Rate of Return) Explain...  

Net Present Value (NPV) Calculation Example Using Excel:    • Net Present Value (NPV) Calculation E...  

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