payback period method for valuation of capital expenditure
Describe briefly payback period method for valuation of capital expenditure proposal?
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In the case of payback period method that is employed for valuation of capital expenditure proposal in that the cash inflows are yet and constant and the period can be calculated by dividing the original investment to the annual cash-inflow. This can be as well represented in number of years that are needed to recover the original cash that has been invested in the project. This the method that is employed to evaluate the period of time as it takes for the original cost of the project that has to be recovered from the earning that are further to the project.
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