The payback period of the project is 3.3 years.
Payback period = initial investment/ annual cash flow
= 50,000/15,000
= 3.3 years.
The time period payback period refers to the amount of time it takes to get better the fee of an funding. surely put, it's miles the period of time an investment reaches a breakeven point. human beings and groups in particular invest their money to receives a commission again, which is why the payback length is so vital.
Payback period in capital budgeting refers back to the time required to recoup the budget expended in an funding, or to attain the ruin-even factor. for example, a $a thousand funding made at the start of 12 months 1 which again $500 at the quit of year 1 and year 2 respectively could have a two-year payback duration.
In simple terms, the payback period is calculated by dividing the cost of the funding via the annual coins waft till the cumulative coins flow is nice, that's the payback yr. Payback length is typically expressed in years.
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Answer:
True
Explanation:
When it start failling it is still true.
Answer:
The Ministry of Freedom Program was founded by Jono Armstrong who is a successful affiliate, generating 8-figure income. He's developed this full training + mentoring + coaching program to help others to achieve similar success.
A business excludes money paid as salaries or wages to employees from operating surplus.
Answer:
Their earnings per share may decrease.
Explanation:
Shareholders of a company may be reluctant to finance expansion through issuing more equity because Their earnings per share may decrease and at the same time debt is always better option to finance.
