0
Payback is usually a specified amount at a specified time. If money is to be gained at an average rate of return, the amount of the return could fluctuate due to inflation or interest rates.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Traditional methods of financial evaluation of projects?
two traditional methods: Average rate of return (ARR) and Payback (PB)...
What is the relationship betveen Payback Period and internal rate of return?
The internal rate of return and the payback period are two factors that are considered during the course of budget planning. Sometimes these two factors will coincide, other times they will contradict. Both of these methods do not show the true value of a proposed project, which is why it is valuable to use both equations when budgeting.
Distinguish between the net present value and internal rate of return?
net present valueis: a snap shot of what a company worth at a certain time. the book value of the company NOW. internal rate of return is the rate of profit on stock holders equity.
What is Pay back period method?
Method of evaluating investment opportunities and product development projects on the basis of the time taken to recoup the investment. This period is compared to the required payback period to determine the acceptability of the investment proposal. In contrast to return on investment and net present value methods, the cash inflows occurring after the payback period are not included in this method. Formula: Payback period (in years) = Initial capital investment ÷ Annual cash-flow from the investment.
What is the average stock market return on a 100 investment?
To know how to determine what the average stock market return is on a $100 investment you have to know what the return rate is and how long the money is being invested.
Traditional methods of financial evaluation of projects?
two traditional methods: Average rate of return (ARR) and Payback (PB)...
Investment Appraisal Methods?
The Payback method is one of the investment appraisal methods. Other methods to appraise investments are the Average Rate of Return and the Net Present Value method.
How do you calculate a payback period?
The payback period is ascertained by calculating the number of years needed to recover the cash invested in a project, For example, an investment of 1000 provides a return of 200,300,500 in consecutive three years. Then total of return in 3 years will be equal to the original investment. Hence the payback period is three years.
Where do you return Nordstrom Rack items?
Back to Nordstrom Rack. They distinguish between clothes from Nordstrom and Nordstrom Rack, so you should return them back to a Rack store.
Are accounting rate of return and payback period non discount cashflow methods?
YES
What are the three capital expenditure techniques?
Internal rate of return, net present value, accounting rate of return and payback method.
How can dns distinguish between ipv4 and ipv6 host in determining which resource record to return?
It reads the protocol/bit stream/header
What techniques are there for capital budgeting?
A capital budget includes a payback period, the net present value, and the internal rate of return. It may also include a modified internal rate of return.
What are the problem of fund assessment of small scale business?
Mainly it is doubtful when we are getting the return back. And also the amount that the business can payback
When a function does not return a value what kind of function is it called?
In most computer languages, a procedure that returns a value is called a function and a procedure that does not return a value is called a subroutine or subprogram. Usually the languages treat the passing of arguments/parameters differently between functions and subroutines. The C language does not distinguish between them. A subroutine that does not return a value is define as a "void" function indicating that no return value is used or available.
What is the relationship betveen Payback Period and internal rate of return?
The internal rate of return and the payback period are two factors that are considered during the course of budget planning. Sometimes these two factors will coincide, other times they will contradict. Both of these methods do not show the true value of a proposed project, which is why it is valuable to use both equations when budgeting.
How do you distinguish revenues from reimbursements?
Revenue is new income. Reimbursement is a return of expended capital.
