Accounting for Managers: "Chapter 13, Section 5: Other Methods"

Read this section that discusses methods of evaluating capital budgeting, calculating the profitability index and discuss the modified internal rate of return (MIRR). Two separate investment proposals are compared and contrasted using multiple methods of comparison. This method of comparison gives the student or manager a broad view about how to evaluate the best decision for investing limited or scarce financial resources. Corporations use these capital budgeting methods when comparing and contrasting competing real estate investments that will yield variable returns.