Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Suzanne is a content marketer, writer, and fact-checker. She holds ...

Capital budgeting encompasses the methods and techniques used by firms to evaluate long‐term investment projects and allocate resources effectively. Traditionally, discounted cash flow (DCF) ...

If you run a small business, you realize early that money can be scarce and you must deploy it wisely. You may want to invest in one or more new projects or expansion ideas but have only limited funds ...

When considering a new project, a business must determine whether the project has the ability to return an initial investment and generate a profit. Capital budgeting determines the worthiness of the ...

Capital budgeting helps companies decide on viable and profitable projects using thorough evaluation methods. Investors gain from capital budgeting as it ensures companies make financial decisions ...

Internal rate of return (IRR) is a capital budgeting measurement used by companies to determine the profitability of a potential investment or project based on predicted cashflows. The IRR formula is ...