Ms. Abida Khatun [MBA(Finance) Symbiosis Pune, B.Sc]

A management graduate with specialization in Finance and throughout first division in academic performance. Within  about one year six months experience in Financial Research company (CRISIL Ltd. and AMBA Research) gained hands of skill in Credit rating and Equities specifically building and updating company models, analyzing industry trends and writing company reports.

Also has a work experience of about 3 years in Cognizant Technology Solutions wherein delivered roles and responsibilities in Requirement Analysis, Application Maintenance Activities, Functional testing, Defect Management and Quality control.

Why and what to learn?

Capital budgeting is an important decision since it involves large pool of money, which affects firms profitability. These decisions have a long term impact which cannot be reversed and it may lead to significant loss of capital. Moreover it helps in your long term decision like whether a particular project is feasible for investment or not, etc.

This video will talk about the basic understanding of Capital budgeting decisions and about the methods of valuation like Net Present value (NPV), Internal Rate of Return(IRR), Payback period and Average Rate of Return (AROR). It also explains that while making your investments, focus upon the following factors as discussed below-

  • Growth
  • Risk
  • Funding
  • Irreversibility
  • Complexity

Whom is it suitable for

It's a very important decision in finance and is suitable for all finance students whether pursuing, CA, CS, CWA, MBA or CFA.