Financial Evaluation of Capital Projects

Principle objective of this article is to discuss Financial Evaluation of capital projects. Financial Evaluation also called financial statement analysis or even accounting analysis or Analysis of finance identifies an assessment of the particular viability, stability and profitability of an business, sub-business or task. It is performed by simply professionals who prepare reports using ratios that employ information taken from financial statements and also other reports. These reports are usually presented to top management united of their bases making business decisions. There are many methods of such analysis that are generally use. This article focus two of these: simple payback analysis and discounted cash flow analysis.