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Limitatios of payback period?
- the payback period is to dependent on cash inflows which are hard to predict. - The payback period only considers revenue, does not consider profits.
When you are calculating payback period do you subtract the salvage value?
No, when calculating the payback period, you do not subtract the salvage value. The payback period focuses on the time it takes for an investment to generate cash inflows sufficient to recover the initial investment cost. The salvage value is typically considered in other analyses, such as calculating the net present value (NPV) or internal rate of return (IRR), but not in the payback period calculation.
When is a decision rule for a payback period is?
Payback period is the number of years required to recover the cost of project or initial cash out flows. Say a project requires an initial investment of $10,000 and you can expect cash inflows at the end of each of the next four years in amounts of $5,000 $4,000 $3,000 and $1,000 N---- CF ----------- Cumulative Cash Flow 0---- -10,000(p) 1---- 5,000 -------- 5,000 2q-- 4,000 -------- 9,000 r 3---- 3,000s ------ 12,000 4---- 1,000 -------- 13,000 As we notice that year before recovery is 2. And to get the remaining months out of Year 3, we do the following calculations (10,000 - 9,000)/3000 1,000/3,000 0.333 years 0.333 x 12 months 4 months Thus regular payback period is 2 years and 4 months.
Calculate 3 3 3 equals 6?
(3 x 3( - 3 = 9- 3 = 6
What is 3 ft squared?
3FT [] or [3]ft or 333333333 3 3 3 3 3 feet 3 3 3 333333333
If the compounding rate becomes lower and lower the future value of inflows approaches .?
the present value of the inflows
What is the importance of foreign capital inflows to the namibian economy?
The importance of the foreign capital inflows to the Namibian economy is that the foreign exchange is used for both the imports and exports. The foreign capital inflows is therefore very important.
What are the effects of inflows and outflows of your economy?
23
What are the effects of outflows and inflows in your economy?
23
What is capital inflows?
The definition of capital inflows is an increase in how much money is available from outside sources to buy local capital assets. It is the movement of capital into an economy or a market.
What is the definitionof revenue recognition?
Revenue recognition is including inflows in financial statement when all when ownership and control has been passed to another person and that inflows is probable based on a transaction
Why do businesses need to plan their inflows and outflows?
Not too sure
What is the Cash Flow of Income on Both Business and personal Account?
Cash inflows for businesses and personal accounts help both entities. The more inflows, the more financially stable each will be.
When performing a cash flow analysis the is the sum of the positive and negative cash flows?
Cash flow analysis is the study of cash inflows and outflows from which activities company received how much cash inflows as well as how much cash outflows from business. If cash inflows more than cash outflows there will be more closing balance of cash then openening balance of cash.
What is irregular inflows?
is the money that can not budget for each month because they are unknown cost
What are the costs and benefits of FDI inflows for a host country such as Germany?
dont like
How do you inventory software?
I use Inflows free software. Works great and supports 100+ products.
