Which of the following is not a capital wodbudgeting technique?
- A) CAPM
- B) Payback
- C) Period
- D) IRR/NPV
Show answer
Answer: A) CAPM
Explanation
CAPM is not a capital budgeting technique. The Capital Asset Pricing Model estimates the return investors require on a share, which can feed into the discount rate. Capital budgeting methods decide whether a project is worth doing: payback period, net present value (NPV) and internal rate of return (IRR).
Asked in: TGTDCL 2018