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tester [92]
2 years ago
8

In capital budgeting analyses, the primary difference between the traditional payback period (pb) technique and the discounted p

ayback period (dpb) technique is that the dpb:_______.
Social Studies
1 answer:
sergiy2304 [10]2 years ago
6 0

The main distinction between the discounted payback period (DPB) technique and the classic payback period (PB) technique in capital budgeting analysis is that the DPB takes time value of money into account.

An analysis of the capital budget is what?

A technique for calculating the financial feasibility of a capital investment over its lifetime is capital budgeting. Capital budgeting, in contrast to several other forms of investment analysis, places more emphasis on cash flows than profits.

What distinguishes a discounted payback period from a payback period?

The amount of years required to recoup the money spent on a project is known as the payback time. The time value of money is not taken into consideration when determining the payback period. The number of years after which the total discounted cash inflows equal the initial investment is known as the discounted payback time.

To know more about capital budgeting technique

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