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 “Net Profits”
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
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.