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
Example of Quantity Discounts Consider illustration one and suppose that a quantity discount of 5 percent is given whether a minimum 200 units is ordered. Required Fin

What are the significant points of Fiscal Policy? Significant points of Fiscal Policy: a. Meaning of fiscal policy and why this is an significant tool into managing economic

Cost of Retaining Finance This will contains dividends for share capital and interest for debt finance or can say tax deducted or like effective cost of debt.  Though, when co

Hull-White model As an extension of the Vasicek model, Hull-White model (1990) assumed that the short interest rate process follows the mean-reverting stochastic differential e

Debtors Collection Period - Formula Fomula is given below: Debtors collection period = 365/ Debtors turnover Or (365 x Average debtors)/ Annual credit sales This

Question: a) An oil well now produces 75000 barrels per year. The well will produce for 21 years more, but production will decline by 3.7% per year. Oil prices however, will in

Constant DPS plus Extra or Surplus 1. Beneath this policy a constant DPS is paid every year. Nonetheless extra dividends are paid in years of supernormal earnings. 2. It prov

Require  the relevant authoritative literature on the lower- of- cost- or- market rule for valuing inventory using the FASB's Codification Research System. Clarify the circumstance

Objectives or Goals of Business 1. Profit maximization - This is a traditional and a cardinal objective of a business.  This is so for the following purpose: To

Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years.  By assuming a discount rate of 20 perce