Topic: Payback Method
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Answers to Common Questions
How to Use the Payback Period Method
Gather the information needed to find the payback period. In this case it is the projected cash flows of (-$10,000, $1,200, $2,000, $4,800, $6,900) provided above. initial investment = -$10,000 Year 1 cash flow = $1,200 Year 2 cash flow = $... Read More »
Source: http://www.ehow.com/how_5922937_use-payback-period-method.html
What are the weaknesses of the payback method?
the payback method ... is a method to evaluate the project in capital budgeting ... or simply in a long term dicision making for the entity .and because it is a long term in nature ..... the risk is high ... by evaluatining methods ... we t... Read More »
Source: http://wiki.answers.com/Q/One+improper+constucture+method+that+ca...
How to Use the Discounted Payback Period Method
Gather together all the information needed to find the discounted payback period. The projected cash flows are (-$12,000, $2,500, $4,000, $5,500, $6,000) initial investment = -$12,000 Year 1 cash flow = $2,500 Year 2 cash flow = $4,000 Year... Read More »
Source: http://www.ehow.com/how_5927406_use-discounted-payback-period-met...
More Common Questions
Answers to Other Common Questions
A method of assessing the potential profitability of two or more competing strategies; based on the assessment of the period of time required before the financial returns from the strategy recoup the original investment.
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Source: http://www.answers.com/topic/payback-method
we only know the disadvantages: The cash flows beyond the payback period are ignored..
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Source: http://wiki.answers.com/Q/What_is_the_advantage_and_disadvantage_...
How is the method superior to the payback method
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Source: http://wiki.answers.com/Q/Why_is_the_NPV_method_superior_to_payba...
The payback method is the simplest way of looking at one or more major project i...
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Source: http://www.chacha.com/question/what-does-the-payback-method-measu...
Spread a rumor but don't have it come back that you are spreading it. Best to write a note like he was the one that wrote it and have some embarrassing details in it. Pass it to someone or sign his name to it and leave it by his locker like...
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Source: http://answers.yahoo.com/question/index?qid=20091029183946AA8Z1xc
There may be other considerations, especially the risk.
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Source: http://wiki.answers.com/Q/Why_is_the_method_with_the_shortest_pay...
Initial Net Investment / (Annual expected cash flow + salvage value)
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Source: http://wiki.answers.com/Q/What_is_bail_out_payback_period
