Relation between Popular Methods of Capital Budgeting Decision Technique of Commercial Enterprise...

The notion of Time Value of Money, which includes the concepts of deferred value and future value, is significant in financial management. This research proposes a strategy for capital planning using the Time Value of Money. The goal of this research is to find a correlation between capital budgeting decision techniques such Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, Profitability Index, Modified Profitability Index, and cost of capital. The usefulness of these relationships is examined, and lastly, we used a stimulating project as an example to check the validity of our relationship. Other authors' modified internal rate of return [1-4] is the same as what we computed using our relationship.

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