Investment decision and evaluation techniques (PP, DPP, ARR, NPV, PI, IRR)

Definition of Investment decision The investment decision is concerned with the selection of assets in which funds will be invested by a firm. Evaluation techniques Non-discounting (Not consider time value of money) Payback period (PP) Accounting rate of return (ARR) Discounted (consider time value of money) Discounted payback period(DPP) Net present value (NPV) Profitability Index (PI) Internal.....