Tag Archives: project

When to use NPV, IRR or MIRR

What is Capital Budgeting? Capital budgeting is the process of allocating capital after determining project feasibility. Determining project feasibility is a 3 part process: Step 1] Qualitative Analysis – Relationship/Branding feasibility, Socio-Cultural & Political feasibility Step 2] Forecasting Performance – Financial Modeling & Structural analysis (Most critical!) Step 3] Quantitative Analysis –IRR (or MIRR), NPV, Payback… Read More »