
Capital Budgeting - Payback Period and Discounted Payback Period
Presentation
•
Mathematics
•
University
•
Medium
Azi Saban
Used 5+ times
FREE Resource
0 Slides • 3 Questions
1
Multiple Choice
What is the decision criteria for Net Present Value (NPV)?
The higher the NPV is better
The lower the NPV is better
NPV more than 1 is better
NPV is 0 is better
2
Multiple Choice
What does it mean by capital rationing?
Liimtation due to unequal life
Limitation on the dolla size of the capital buget
Limitation to size disparity
Limitation due to time disparity
3
Open Ended
Calculate payback period and discounted payback period for this cash flows with required rate of return of 17%.
Write your workout properly on paper and submit and just key in your answer in the answer box
PBP Long:
DPBP Long:
PBP Short:
DPBP Short:
What is the decision criteria for Net Present Value (NPV)?
The higher the NPV is better
The lower the NPV is better
NPV more than 1 is better
NPV is 0 is better
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