Payback period method - traditional methods, Finance Basics

Assignment Help:

Payback Period Method - Traditional Methods

This method gauges the viability of a venture via taking the outflows and inflows over time to ascertain how soon a venture can payback and for this purpose PBP as or payout period or payoff is that duration or period of time it will consider an investment venture to generate enough cash inflows to payback the cost of that investment.  This is a popular approach with the traditional financial managers since it helps them ascertain the time it will consider to recoup in form of cash from operations the original cost of the venture. This method is generally a significant preliminary screening stage of the viability of the venture and it may yield clues to profitability though in principle it will measure how quickly a venture may payback quite than how much a venture will produce in profits and yet the main objectives of an investment is not to recoup the original cost but to earn a profit also for the investors or owners.


Related Discussions:- Payback period method - traditional methods

Dividend policy, Charleston Industrial revised its dividend policy and deci...

Charleston Industrial revised its dividend policy and decided that it wants to maintain a retained earnings account of $1 million. The company''s retained earnings account at the e

Advantage of joint stock companies, Advantage of Joint Stock Companies ...

Advantage of Joint Stock Companies The company can own assets and incur liabilities on its own accord. Perpetual existence as or going to relate that allows the compan

Capital structure ratio, Capital Structure Ratio Gearing/Leverage/Capi...

Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the

Australi a, i ordered case study 1 susam and malcom. when i open the docume...

i ordered case study 1 susam and malcom. when i open the document is completely different, not the same case study an is only relivent in the usa not australia... do you have the c

Calculate holding period return, 1)       What is the holding period re...

1)       What is the holding period return to an investor who bought 100 shares of Charter Oil nine months ago for $36 a share, received two $50 dividend checks, and sold the s

Agency theory - finance, Agency Theory The agency problem between mana...

Agency Theory The agency problem between managers and shareholders can be resolved via paying high dividends. If retention is low, managers are necessary to increase additiona

Aafafa, Ask lajgkjasbgksabgbaskjbaskjbasjgbhjabgjbjgbskjgbkasbgjkabksgbksbg...

Ask lajgkjasbgksabgbaskjbaskjbasjgbhjabgjbjgbskjgbkasbgjkabksgbksbgkabkhvakkvbaoygfyabkbkkye#Minimum 100 words accepted#

What is nominal and real return, What is Nominal and Real Return Whi...

What is Nominal and Real Return While nominal return is the return in nominal rupees, real return is equal to the nominal return adjusted for changes in prices i.e. rate of

Financial planning, Financial Planning A financial manager along with...

Financial Planning A financial manager along with present investment policies will be concerned along with how efficiently the company's funds are invested since it is from t

Floatation of new shares, Floatation of New Shares Rules for floatati...

Floatation of New Shares Rules for floatation of new shares The company must contain an issued share capital of at least Kshs.20 M. The company must contain c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd