The cash payback Operiod is calculated by dividing the annual cash inflow by the cost of the
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The cash payback
Operiod is calculated by dividing the annual cash inflow by the cost of the capital investment.
method is frequently used as a screening tool, but it does not take into consideration the long-term profitability of a project.
O technique is a quick way to calculate a project's net present value.
Orule says that the longer the payback period the more attractive the investment.
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