Posted by **Randy** on Monday, September 3, 2007 at 9:37am.

How do I figure out Capital Budgeting in easy to understand terms. Example Cashflow is -$500,000 and the discount rate is 0%, what is the projects net present value?

- Fin301 Economics -
**economyst**, Tuesday, September 4, 2007 at 9:58am
I am not an accountant; so I tend to avoid questions that apply certain accounting principals. That said, concepts in most disciplines can be understood with simple common sense. Dont make things more complicated than they really are. Second, dont panic. Do a little research and ask for help when you need it. For example, googling "cashflow defined" would give several hits providing the definition of cashflow. I personally like hits to Wikipedia for quick explanations.

Take it from here: google "cashflow defined" and "net present value, defined", and "discount rate, defined"

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