How can a payback period approach be used to evaluate potential projects?

What will be an ideal response?


The project payback period approach estimates the amount of time that will be necessary to recoup the investment in a project; that is, how long will it take the project to pay back its initial budget and begin to generate positive cash flow for the company. The discounted cash flow method is used to estimate cash outlays and inflows resulting from investment in a project, and these positive and negative flows are compared using the ratio:
Payback Period =
Shorter paybacks are preferable to longer paybacks.

Business

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A credit memorandum appeared on Central Company's bank statement. How will Central treat this amount on its bank reconciliation?

a. Add it to the bank balance b. Add it to the book balance c. Deduct from the bank balance d. Deduct from the book balance

Business

Parties desiring a hearing before the U.S. Supreme Court usually file a petition for

writ of _____. Fill in the blanks with correct word

Business

Aleve Inc., a pharmaceutical company, launches an ad that claims, "Taking one pill from Aleve is as effective as taking three pills from any other company." This ad campaign is using a(n) ________ appeal.

A. product popularity B. competitive advantage C. news D. emotional E. favorable price

Business

An employer may not discriminate against a person with an impairment who is unable to perform a specific job

Indicate whether the statement is true or false

Business