Payback Period (PBP) gives the length of time required for Net Cash Flows (or net profits) to pay back the initial capital cost of the investment.
Posts tagged as “Cash Outflows”
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
This article introduces the main parts of a typical Cash Flow Statement. All Cash Flow Statements record essential predictions grouped into five basic sections.
Both Cash Flow Statement and Cash Flow Forecast only deal with cash. All firms should engage in forecasting theirs cash flows.
Let’s take a closer look how Cash Flow, investment and profit are interlinked with each other in a business organization.
Cash Flow shows movements of cash within a business. Cash Flow relates to the timing of payments – receiving cash and spending cash.
With the demand for necessities and luxury products falling during economic recession, it is important for managers to consider ways to reduce business costs.
Average Rate of Return (ARR) of An Investment
BUSINESS MANAGEMENT, FINANCE and INVESTMENT APPRAISAL
Average Rate of Return (ARR) gives the annual Net Cash Flows (or net profits) from a project as a percentage of the initial cost of the investment.