The payback method of evaluating capital expenditure projects is very popular because it's easy to calculate and understand. It has severe limitations, however, and ignores many important factors ...

There are various capital budgeting methods companies can employ to aid in the decision-making process. The most common methods are outlined below. Payback period The payback period method of ...

The payback period method of capital budgeting allows companies to calculate how long it will take to recoup the outlay for an investment. The payback period is calculated by taking the total cost ...

The payback period method is a simple capital budgeting technique that involves calculating the number of years it will take to recover the initial cash invested.

The Payback Period has been dismissed as misleading and worthless by most writers on capital budgeting at the same time that businessmen continue to utilize this concept. This paper seeks to identify ...

Determine the net present value (NPV), internal rate of return (IRR), and payback periods (PBP) of a series of cash flows using spreadsheet analysis Apply NPV, IRR, and PBP criteria to evaluate an ...