We have examined five basic methods for evaluating the financial profitability of a single project: PW, AW, FW, IRR, and ERR. These methods lead to the use of simple decision rules for economic evaluation of projects.

Discuss the two supplemental methods for assessing a project's liquidity: the simple payback period and the discounted payback period. Pick one and describe what the advantages and disadvantages would be in comparison to the other option. Make sure to apply concepts.

Answer rating: 100% (QA)

Assessing Project Liquidity Simple Payback Period vs Discounted Payback Period While the five methods you mentioned PW AW FW IRR and ERR focus on prof... View the full answer