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This is the second section of a two part article dealing with capital budgets. The first part focused on the net present value method of appraising proposed investments. This extract deals with three other commonly used methods: the internal rate of return, the payback method and the accounting rate of return.

George Soros

George Soros is best known as the man who broke the Bank of England on "Black Wednesday"in 1982, but there is much more to him than that as this extract from the IEBM demonstrates.

Capital budgeting (part 1)

Financial analysis is the means of appraising whether a proposed investment in a commercial activity is likely to be of value from the point of view of the stockholders. Investments in commercial activities are called capital projects. They usually involve the purchase of a physical asset, such as a machine or a new factory; a capital project may also involve investment in a less tangible asset, such as a new product or an advertising campaign.

Acquisitions

This extract examines the main reasons for acquistion, namely increased market power. Firms use different types of acquisitions to increase their market power. Horizontal, vertical and related are three types of acquisitions firms use to increase their market power.

Increased market power

Achieving greater market power is a primary reason for acquisitions. Market power exists when a firm is able to sell its goods or services above competitive levels, or when the costs of its primary or support activities are lower than those of its competitors.

Here is just a taste of the great teaching and learning resources available in our Learning Zone; case studies, blogs, business features, games and reference material available on Biz/ed.

Financial Ratio Analysis - Dividend Yield

Multiplier Principle [ Biz/ed Virtual Developing Country ]

The Psychological Benefits of Work

Production Staff [Virtual Factory Production Department]

Performance Ratios - Ratio Analysis [Virtual Learning Arcade]