Buy custom Explain the theoretical rationale for the NPV approach to investment appraisal
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1399 |
Essay's paper body
The usual way that firms deal with deciding between two or more competing projects is to accept the project that has the shortest payback period, where:
Payback period = Initial payment / Annual cash inflow.
Payback is often used as an initial screening method in capital budgeting and is popular because of its simplicity...
Essay fragment
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The usual way that firms deal with deciding between two or more competing projects is to accept the project that has the shortest payback period, where:
Payback period = Initial payment / Annual cash inflow.
Payback is often used as an initial screening method in capital budgeting and is popular because of its simplicity...
Essay fragment
General points of the essay
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