Acceptance rule of payback period or pbp, Finance Basics

Assignment Help:

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.


Related Discussions:- Acceptance rule of payback period or pbp

Asset based valuation, Asset Based Valuation  This method acquires int...

Asset Based Valuation  This method acquires into account the entire business along with reference to its assets and then divides the resultant value via the number of shares i

Budget, Why good judgement is important when making budgeting decisions

Why good judgement is important when making budgeting decisions

Lock-box system, Lock-Box System In a lock-box system, the customer se...

Lock-Box System In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all bus

Dividend cover ratio, Dividend Cover Ratio Dividend cover = EPS/ DPS =...

Dividend Cover Ratio Dividend cover = EPS/ DPS = Earning to ordinary shares/Dividend paid       This signifies the number of times dividend can be paid from earnin

Capital Allocation, Consider the following capital market yielding 1% per y...

Consider the following capital market yielding 1% per year and a mutual fund consisting of 60% stocks and 40% bonds. expected return of stocks 9.75% per year and expected return on

The price jump on its initial day of trading, Following the Initial Public ...

Following the Initial Public Offering (IPO), the shares of Rosetta Stone, the language instruction company, jumped almost 44 percent from an initial price of $18 to $25.55 in late-

Finance, Spot transaction hedge/Money market hedge There are three parts t...

Spot transaction hedge/Money market hedge There are three parts to this question. Please answer all parts. The Chicken Company, a company with headquarters in Switzerland, has a r

Factors of capital structure, Factors of Capital Structure 1. Availab...

Factors of Capital Structure 1. Availability of securities - This influences the company's employ of debt finance that means such if a company has enough securities, so then

Financial and Operational Hedging, There are four different commonly used f...

There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk. Drawing on literature, critical

Development banks and financial institutions, Development Banks and Financi...

Development Banks and Financial Institutions There are some sectors in the economy such may not secure adequate funds from commercial banks for different motives. a) May re

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