Capital Investment Appraisal Flashcards
(2 cards)
1
Q
Payback Period
A
Amount needed in final year / Net cash flow in final year
2
Q
Net present value
A
( cost of investment) + sum of all discounted cash flows
Payback Period
Amount needed in final year / Net cash flow in final year
Net present value
( cost of investment) + sum of all discounted cash flows