Shorter the payback perio-attractive the investment


Describe the cash payback technique. The cash payback technique identifies the time period required to recover the cost of the investment. The formula when net annual cash flows are equal is: Cost of capital investment ÷ Estimated net annual cash flow = Cash payback period. The shorter the payback period, the more attractive the investment.

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Accounting Basics: Shorter the payback perio-attractive the investment
Reference No:- TGS095949

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