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Investment Decision Criteria

Date post: 16-Jul-2015
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Investment Criteria

Discounting Criteria

NPVBenefit Cost

RatioIRR

Non Discounting

Criteria

PayBackPeriod

Accounting Rate of Return

1.

2.

3.

1.

2.

3.

GOOD

BAD

BENEFIT-COST RATIO(BCR)=PVB/I

NET BENEFIT-COST RATIO(NBCR)=PVB-I/I

=BCR-1

••

Payback Net Initial Investment

Period Uniform Increase in Annual Future Cash Flows=


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