Benefits of payback period1 use simply and understand and, Ask an Expert

Finance

Benefits of Payback Period

1. use simply and understand and it has created it popular among in ascertaining the viability of venture executives, mainly traditional financial managers.

2. Ideal beneath high-risk investments since it will identify such venture will payback earlier thus minimizing the risks by a venture.

3. Advantageous whenever choosing among mutually exclusive projects as it will offer a clue as to that venture is viable whether one considers the shortest PBP and that highest inflow of a venture.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9520172

Have any Question?Write your Review or question?

Related Questions in Basic Finance

You are the project manager assigned to build and design a

You are the project manager assigned to build and design a parking garage. What might be an example of a lead you encounter when scheduling work activities?

A suppose you purchase a 3-year zero-coupon bond with face

(a) Suppose you purchase a 3-year zero-coupon bond with face value of $1000 and a price of $850. What is the bond's yield? If you hold the bond to maturity, what will be your effective annual return? (b) Now suppose you ...

What are some alternative methods that can help teach

What are some alternative methods that can help teach companies about the culture of where they want to do business before they make the move?

You decide to deposit 160521 dollars in an account that

You decide to deposit 1,605.21 dollars in an account that earns 10 percent annual interest (compounded annually). How much is in the account 10 years from now?

Matt johnson delivers newspapers and is putting away 50 at

Matt Johnson delivers newspapers and is putting away ?$50 at the end of each quarter from his paper route collections. Matt is 9 years old and will use the money when he goes to college in 9 years. What will be the value ...

Kyle has recently received an inheritance and is

Kyle has recently received an inheritance, and is considering paying off the loan on his car with one lump sum payment. The loan requires a payment of $550 per month and there are 36 payments left. The interest rate unde ...

Are there risks involved in investing in security markets

Are there risks involved in investing in security markets? Can someone explain what is a risk-return tradeoff? Lastly are risks ever mitigated with diversification and time?

Risk versus ambiguitya define each of the concepts risk and

Risk versus ambiguity a. Define each of the concepts risk and ambiguity (sometimes called Knightian uncertainty). b. Provide a simple example that incorporates risk in monetary payoffs but not ambiguity. c. Describe a si ...

What do you think happened to bond prices when interest

What do you think happened to bond prices when interest rates went down in the US after the GFC?

Obnk has a plowback rate of 30 a roe of 20 and a

OBNK has a plowback rate of 30%, a ROE of 20%, and a capitalization rate of 10% p.a. In three years OBNK is expected to increase its plowback rate to 40% and its ROE is expected to decrease to 10%. What is the intrinsic ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert