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 “Fixed Asset”
Appraising investments is a part of the Capital Budgeting Cycle. Investment Appraisal helps to determine the best investment for a business.
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
There is a number of different methods accountants can use to calculate depreciation of Fixed Assets in Balance Sheet. Straight-Line Method. Reducing Balance Method.
Depreciation is a decrease in the value of Fixed Assets. Some assets such as Equipment (machinery) and Vehicles tend to fall in value over time.
Businesses usually have two types of spending such as Revenue Expenditure and Capital Expenditure. Here is how to correctly record these two types of spending.
A mortgage is a long-term bank loan used by the business for the purchase of land or buildings. Mortgages are secured bank loans.
Sale-and-leaseback is a transaction when the business sells a particular Fixed Asset and immediately lease that asset back.
The country’s economy usually does not grow at the steady and constant rate, but tends to grow at different rates over time which leads to The Business Cycle.