Acceptance rule of payback period or pbp, Finance Basics

Acceptance Rule of Payback Period or PBP

By using PBP method a company such will accept all those ventures whose payback period is less than to set via the management and will refuse all those ventures whose PBP is more than that set via the management. Otherwise, PBP may be gauged against the term of the loan whether case the PBP method will provide a high ranking to all those ventures paying back before the term of the loan and the highest ranking will be specified to those projects with shortest PBP. Conversely, in assessing the viability of a venture it is too significant to see that venture brings returns earlier, another things being equal.

Posted Date: 1/31/2013 12:25:09 AM | Location : United States







Related Discussions:- Acceptance rule of payback period or pbp, Assignment Help, Ask Question on Acceptance rule of payback period or pbp, Get Answer, Expert's Help, Acceptance rule of payback period or pbp Discussions

Write discussion on Acceptance rule of payback period or pbp
Your posts are moderated
Related Questions
Suppose an entrepreneur owns a firm that has a production technology that generates the following revenue: R(e) = e 2 +100e where revenue depends on his effort level e. The monetar

Conditions for Lease Finance Lease finance is ideal within the following circumstances: a) Whenever the asset depreciates faster. b) Whenever the asset is matter to obso

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

Define the term contractual savings depository institutions. Contractual savings institutions: Contractual savings institutions obtain funds at periodic intervals onto a

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4?  market price of a share

Requirements for Raising Loan Requirements for Raising Loan are as follow: a) Subsidiaries of the company and History. b) Qualifications, ages, and names of the company's dire

Cash and Marketable Securities Management The management of marketable and cash securities is single of the key areas of working capital management. Because cash and marketabl

Ask questConsider an 8% coupon bond selling for $953.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r

Bill Smith, a manager of a restaurant/bar in Los Angele, is in the 25% marginal tax bracket and pays additional 5% in taxes to the state of California. Bill has 20,000 invested in

Advantages of Using Debt Finance Interest on debt is a tax permit able expense and as that it is reduced via the tax allowance. The cost of debt is fixed regardless of