Executive Summary
This paper deals with the analysis of various capital budgeting techniques for the replacement of the new equipment. The company has got the proposal for the replacement of the old equipment with the new equipment that will produce more and reduce the cost. Considering all the aspects necessary for capital budgeting like tax rate, initial outlay, annual cash flow and differential cash flow; the analysis is done. In simple words, it is like performing the feasibility analysis of the project in terms of finance. The techniques like IRR and NPV is used to make the decision. In addition to ...