Net Present Value (NPV)
NPV explained for CA Inter FM: formula, decision rule, worked examples & exam pitfalls. Master capital budgeting's most important technique
Paper 6 — Financial Management & Strategic Management · Chapter
Capital Budgeting
Investment-decision techniques — NPV, IRR, payback, profitability index, modified IRR, plus risk and uncertainty analysis. Highest-weight FM chapter — expect 12–15 marks.
6 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Internal Rate of Return (IRR) & Modified IRR
IRR explained for CA Inter FM: what it is, how to calculate it by interpolation, decision rule, and key limitations tested in ICAI May 2026
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3
Payback Period & Discounted Payback
Payback Period for CA Inter May 2026: uniform vs uneven cash flows, formula, worked examples in ₹, decision rule, and top exam mistakes expl
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4
Profitability Index (PI)
Profitability Index formula, capital rationing project ranking, and worked examples for CA Inter FM Paper 6 — May 2026 exam prep.
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5
Risk Analysis (Risk-adjusted Discount Rate, Certainty Equivalent)
Risk Analysis in Capital Budgeting for CA Inter: Sensitivity, Scenario, RADR & Certainty Equivalent explained with Indian examples for May 2
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6
Scenario & Sensitivity Analysis
Sensitivity & Scenario Analysis for CA Inter FM: learn to stress-test NPV, find switching values, and ace Capital Budgeting risk questions i
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