Also referred to as capital budgeting

A) Capital investment analysis
B) Time value of money concept
C) Net present value method
D) Average rate of return
E) Cash payback period

Capital Investment Analysis

The process of evaluating and comparing potential expenditures or investments that are significant in amount to determine the best course of action.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of a business's growth and financial stability.

Net Present Value Method

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period of time.