Evaluation and techniques - Discounted payback period approach Flashcards Preview

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Flashcards in Evaluation and techniques - Discounted payback period approach Deck (1):
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Discounted payback period approach

Uses discounted cashflows

Remember to distinguish annuities etc in the cashflows

PV are less than nominal values

Advantages - Easy to use and understand
Evaluating project liquidity
Uses time value of money concept

Ignores cashflows after payback

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