Discounted payback method

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• Payback Period Methid and Discounted Payback Method

  12989 Payback Period Methid and Discounted Payback Method What are the differences between the payback period method and the discounted payback method? Which method is better in valuating investments?

• Basic Capital Budgeting

  --The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

• Capital Budgeting

  312458 Regular Payback Method; Discounted Payback Method, NPV, WACC, Mutually Exclusive Project What are the three potential flaws with the regular payback method? Does the discounted payback method correct all three flaws? Explain.

• Investment project: payback period, discounted, NPV, IRR.

  Wwhat is the payback period? What is the discounted payback period? What is the NPV? What is the IRR? Should we accept this project? What decision rule should be the primany decision method? When is the IRR rule unreliable?

• Capital budgeting

  The basic difference is that regular method uses the raw cash flows while the discounted method uses the discounted cash flows. (4) What are the two main disadvantages of discounted payback?

• 'Although the discounted payback period approach can deal with the criticism that the payback period ignores the time value of money, the discounted payback period approach is still not as superior as the NPV method.' Do you agree with this statement?

  as the NPV method.'

• Decision rules of capital budgeting techniques

  76047 Capital budgeting The five most popular capital budgeting decision rules taught in universities are the payback method, the discounted payback method, the net present value (NPV) method, the profitability index, the internal rate of return (IRR

• This posting addresses the Payback Period Ratio

  In recent times, however, management teams that have wanted to take advantage of the payback period method but don't want to ignore the time value of money have adopted a variation on the payback period ratio, called the discounted payback period ratio

• NPV, Discounted Payback Period

  Discounted Payback Period In the discounted payback period method the cash flows are discounted Year Cash flow Discount factor @ Discounted cash flow= Cumulative discounted cash flow 12% 0 ($52,125)