What is qualities of pay back method, Financial Management

Assignment Help:

Q. What is Qualities of Pay Back Method?

Qualities of Pay Back Method:-

(i) Simple: - The most important merit of this method is that it is simple to understand and easy to compute.

(ii) Suitable for Firms Suffering from Liquidity: - This method is very suitable for firms suffering from shortage of cash for the reason that emphasis in this method is on quick recovery of the original investment.

(iii)Appropriate in case of Uncertain Conditions: - This method is very appropriate where the long term outlook is extremely uncertain and risky.

(iv) Importance to Short-Term Earnings: - This method is useful for firms which lay more emphasis on short-term earnings rather than the long-term growth.

(v) Superior to ARR Method: - It is superior to ARR method for the reason that it is based on cash flow analysis.


Related Discussions:- What is qualities of pay back method

Describes the methods of capital budgeting, Q. Describes the methods of Cap...

Q. Describes the methods of Capital Budgeting? Capital Budgeting: - Capital Budgeting is the procedure of making decisions for investment in long-term assets. It is a method of

OPERATING CYCLE, DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE TO APOULTR...

DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE TO APOULTRY BUSINESS (BROILERS)

What is cash credit, Q. What is Cash Credit? A cash credit is an arrang...

Q. What is Cash Credit? A cash credit is an arrangement by which a bank allows his customer to borrow money up to a certain limit against some tangible securities or guarantees

Leveraged buyout (lbo), Leveraged Buyout (LBO) Acquisition of an organi...

Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.

Risk of default influence the rate of interest, Q. Risk of default influenc...

Q. Risk of default influence the rate of interest? The bank offering the loan to Blin will make an assessment of the risk that the company might default on its loan commitments

International strategic management, undertake a critical review of the curr...

undertake a critical review of the current academic literature to determine the reasons for benefits of and the costs to companies of cross listing.

What is trustworthy collateral from the lenders'' perspective, What is trus...

What is trustworthy collateral from the lenders' perspective?Explain whether accounts receivable and inventory are trustworthy collateral. Assets that are readily marketable of

Computing the expected total return for investment, To compute the total ...

To compute the total returns we need the investment horizon, reinvestment rate and the price of the bond at the end of the investment horizon. Steps involved in computi

Explain the various key determinants of initial project cost, Question 1 Th...

Question 1 There are several elements which you can take into consideration, while budgeting a project. Describe these elements Question 2 Explain the different methods/source

#title.operating cycle., discuss the applicability of an operation cycle in...

discuss the applicability of an operation cycle in a vegetation business

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd