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The payback decision rule is a capital budgeting method that evaluates the time it takes for an investment to recover its initial cost through cash inflows. According to this rule, an investment is considered acceptable if its payback period is less than or equal to a predetermined threshold, often based on the company's risk tolerance or capital cost. This approach is simple and provides quick insights, but it does not consider the time value of money or cash flows beyond the payback period. As a result, it is often used in conjunction with other evaluation methods for a more comprehensive analysis.
What else can I help you with?
When was Payback Time created?
Payback Time was created in 2000.
What is the duration of Payback Season?
The duration of Payback Season is 1.52 hours.
How much money did Payback gross domestically?
Payback grossed $81,526,121 in the domestic market.
What are three potential flows with regular payback method?
Three potential flaws of the regular payback method include its disregard for the time value of money, as it treats all cash flows as equal regardless of when they occur. Additionally, it does not consider cash flows that occur after the payback period, potentially overlooking long-term profitability. Lastly, it may lead to biased decision-making by favoring short-term projects over more profitable long-term investments.
What are the release dates for Strikeforce Payback - 2008 TV?
Strikeforce Payback - 2008 TV was released on: USA: 3 October 2008
Which investment rule may not use all possible cash flow in its calculations npv payback period or irr?
payback period
Which is the most favored type of decision making?
Majority rule decision
What does it mean to rule a country?
To rule a country means to be the topmost decision-maker in a country.
What is the formula for the payback period?
Formula for the Payback Period. Payback period = Initial investment / Annual Cash inflows
Adavntages of using payback period?
advantages of payback period?
When was Payback Time created?
Payback Time was created in 2000.
When was The Payback created?
The Payback was created on -19-10-02.
When was Payback released?
Payback was released on 02/05/1999.
What was the Production Budget for Payback?
The Production Budget for Payback was $50,000,000.
What is the difference between payback and discounted payback?
Simple payback method do not care about the time-value of money principle while discounted payback period do take care of this principle in calculation.
Advantage and disadvantage of payback?
There are a few different advantages and disadvantages of payback. Payback can help ensure that there is further action in a case for example.
How do you get payback on a friend So we were going to meet these TWINS And he blew me off PAYBACK PLEASE?
if its a friend is it seriously necessary to get payback? =s
