MOD 3 SLP Applying Various Capital Budgeting Methodologies Name Course Instructor Date Introduction The concept of time value of money captures the discounting of future cash flows using a known discount rate. Since the future is uncertain, the time value of money is essential to capital budgeting. The investment appraisal methodologies have different criteria for decision-making, focusing on the conditions to accept or reject projects he Net Present Value (NPV) is favored compared to the other methodologies and to aggregates the discounted cash flows. The paper compares the advantages and drawbacks of various capital budgeting methodologies Calculation of the NPV DiscountedYearCash flowPVIFP.V. Cash flows 0125,000,0001-125,000,00012,000,0000.888917778002 3,500,0000.79012,765,350313,500,0000.70239481050489,750,0000.6243560309255115,000,0000.5549638135006120,000,0000.493359196000NPV68,064,625 Regular payback period and discounted payback period Payback period refers to the time when the initial investment is recovered, and it indicates the riskiness and liquidity of the investment project. Since there are unequal cash flows, the payback period is calculated until the net cash flow is equal to zero. However, the payback period is not used alone. The decision criterion is to accept a project whose payback period is less than the, maximum acceptable payback period (accountingformanagement.org, 2013...