Payback Period Methid and Discounted Payback Method
Not what you're looking for?
What are the differences between the payback period method and the discounted payback method? Which method is better in valuating investments?
Purchase this Solution
Solution Summary
This solution discusses the differences between the payback period method and the discounted payback method.
Solution Preview
The Payback Period:
The payback period method is an investment valuation model that is based on a management or shareholders' decision that sets the required cut-off period for a project to be considered acceptable. For example, a company that invests $5 million in a project may set a cut-off period of 3 years, which means that the initial investment of $5 million must be paid back by the project's cash flows within 3 years. If the amount is not paid back before this cut-off period, the project is considered ...
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.