Capital budgeting

Capital Budgeting

Sharpen your decision-making skills with our expertly designed Capital Budgeting Practice Exam, available at Exam Sage. This exam helps you master the key principles and quantitative tools used to evaluate long-term investment decisions in business and finance.

Topics covered in the Capital Budgeting exam include:

• Net Present Value (NPV) – Learn how to calculate and interpret NPV to determine the profitability of potential investments.

• Internal Rate of Return (IRR) – Practice identifying the discount rate that makes a project’s NPV zero and compare investment opportunities.

• Payback Period & Discounted Payback – Understand how to measure the time needed to recover the initial investment, both with and without discounting.

• Profitability Index (PI) – Explore how to use PI to rank investment options, especially under capital rationing conditions.

• Capital Rationing & Risk Analysis – Test your knowledge of how to make optimal investment decisions under budget constraints and uncertain conditions.

• Scenario & Sensitivity Analysis – Learn how to assess project outcomes under different assumptions and risks.

Ideal for finance students, MBA candidates, and business professionals, this practice exam strengthens your grasp of capital budgeting techniques and prepares you for real-world financial decision-making.