Karwan Talaat Rashid
Business and Management Department, Tishk International University, Erbil, Iraq
Email: [email protected]
DOI: 10.23918/ICABEP2019p21
(Full Paper)

This research study is aimed to optimize the capital budgeting applies in the investments or projects to understand efficiently to making maximize the profits in over the time benefits. To meet the research objectives that arrange the investment plan to take full advantage of the net present value, and the investors can utilize the capital of investments, and the capital evaluation criteria in the project’s implementation can be optimizing the cost benefits this study used five capital evaluation elements NPV, EAC, PI, IRR and Payback Period. This study is the analytical concept to study mentioned the five financial evaluation criteria, to analyze scopes of financial budgets. In this research assumed examples based on the real projects or investments and separated each example principles have measured to be clear figure information. Furthermore, the working out of the technique is also based on the methods of modelling of business processes, business value, and capital budgeting. in the research, outcome identifies there is a strong relationship between the net present value and equivalent annual cost that has to impact the maximum profits and internal rate return according to the payback period at this review if, NPV > 0, the venture is viewed as viable and the other way around when NPV < 0. The task is viewed as incapable from the monetary perspective and is rejected.

Keyword: Net Present Value, Earn Annual Cost, Profit Index, Internal Rate of Return and Payback Period.

International Conference on Accounting, Business, Economics and Politics

ISBN: 978-9922-9036-3-7