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Can some one tell me how to calculate payback period and which formula i used to calculated payback period?
Explain!!!!
Explain Capital Budgeting and its methods.
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Payback period: The length of time required to get well the cost of an investment. The payback period of a provided investment or project is an important determinant of whether to undertake the project or position, as longer payback periods are naturally not desirable for investment positions. Calculated as: Payback Period = Cost of Project / Annual Cash Inflows
Payback period:
The length of time required to get well the cost of an investment. The payback period of a provided investment or project is an important determinant of whether to undertake the project or position, as longer payback periods are naturally not desirable for investment positions.
Calculated as:
Payback Period = Cost of Project / Annual Cash Inflows
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