Pay back period

Related BrainMass Solutions

• NPV - Pay Back Period

  The solution provides a pay back period recommendation by the CEO of a project.

• '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?

  Even with discounted Pay back approach we ignore the cash flows after the pay back period. Thus, it rejects projects which have bulk of cash inflows coming in later stages of the project life.

• Payback period, NPV, IRR

  The 3 main tools used to make this evaluation are the pay-back period, net present value (NPV), and internal rate of return (IRR).

• Monte Carlo Simulation and Picking the Best Investment

  b.Other methods do better analysis as the pay back period ignores the time value of money and it also ignores the cash inflow after the pay back period.

• Pay back period

  Response helps in computing the pay back period.

• Calculation of Pay back period, Net present value

  The answer contains the computation of pay back period and Net present value

• Credit terms and sales.

  If customers do not pay back withing 15 days, they will pay the whole amount in 60 days which is the same period with the current offer. Therefore, sales will increase.

• Payback Period for Empire Office

  the answer is (d) pay back period = 2.40.

• Payback and net present value

  back period of Project B is 1 year Pay back period of Project A is 1 year (or 10000/12000) =0.83year) Payback period measures the time it will take to recoup, in the form of expected future cash flows, the net initial investment in the project