answersLogoWhite

0

Payback Time was created in 2000.

User Avatar

Wiki User

11y ago

What else can I help you with?

Continue Learning about Movies & Television

What is the duration of Payback Season?

The duration of Payback Season is 1.52 hours.


Payback period concept is best explained by what?

Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques.


How much money did Payback gross domestically?

Payback grossed $81,526,121 in the domestic market.


What is the payback decision rule?

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 are the weaknesses of the payback period?

The payback period has several weaknesses, including its focus on the time required to recover initial investment without considering the overall profitability of a project. It ignores cash flows that occur after the payback period, which can lead to suboptimal investment decisions. Additionally, it does not account for the time value of money, potentially misrepresenting the attractiveness of long-term projects compared to shorter ones. This can result in a bias towards quick returns rather than sustainable, long-term profitability.