What are the different methods used for post-evaluating projects in capital budgeting?

The different methods used for post-evaluating projects in capital budgeting include:

1. Payback Period: This method calculates the time required for the project to generate enough cash flows to recover the initial investment. It is a simple and quick method but does not consider the time value of money.

2. Accounting Rate of Return (ARR): This method calculates the average annual profit generated by the project as a percentage of the initial investment. It is based on accounting profits and does not consider the time value of money.

3. Net Present Value (NPV): This method calculates the present value of all cash inflows and outflows associated with the project, discounted at the required rate of return. If the NPV is positive, the project is considered acceptable as it generates more value than the initial investment.

4. Internal Rate of Return (IRR): This method calculates the discount rate at which the present value of cash inflows equals the present value of cash outflows. If the IRR is higher than the required rate of return, the project is considered acceptable.

5. Profitability Index (PI): This method calculates the ratio of the present value of cash inflows to the present value of cash outflows. A PI greater than 1 indicates that the project is acceptable.

6. Modified Internal Rate of Return (MIRR): This method addresses the shortcomings of the IRR by assuming that cash inflows are reinvested at the required rate of return and cash outflows are financed at the cost of capital.

These methods help in evaluating the financial viability and profitability of projects in capital budgeting.