Capital Budgeting Techniques for Judging the Suitability of a Project

Running head: FINANCE FOR MANAGER
Finance for manager
Name of the Student
Name of the University
Author’s note

FINANCE FOR MANAGER1
Executive Summary
The purpose of this paper is to discuss about the various capital budgeting techniques for
judging the suitability of a project. In this case three of the key capital techniques have been
used, that is, net present value, internal rate of return and payback period. Through these
techniques, the acceptability of the printer is judged and suitable explanations are provided in
each section. In the second part of the report, a thorough and detailed explanation is provided
regarding the different types of private equity investments which are available to the
businesses. In this context, the global resurgence of these investments are explained followed
by the risks and opportunities of these investments.

FINANCE FOR MANAGER2
Table of Contents
Part 1..........................................................................................................................................3
Payback period...........................................................................................................................3
Net present value........................................................................................................................3
Internal rate of return.................................................................................................................4
Brief note for management for indicating theoretical and practical basis about which printer
should be preferred.....................................................................................................................6
Part -2.........................................................................................................................................6
Introduction................................................................................................................................6
Discussion..................................................................................................................................7
Global resurgence of the private equity asset class....................................................................7
Different types of private equity investments............................................................................7
Opportunities and risks of investing in private equity...............................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

FINANCE FOR MANAGER3
Part 1
Payback period
The payback period of printer A is 4.04 years and the payback period of printer B is
3.65 years. On the basis of payback period, printer B would be accepted first followed by
printer A. Therefore, printer B can be ranked 1 and printer A can be ranked 2.
Net present value