What is the difference b/w NPV and PBP?
Answers were Sorted based on User's Feedback
Answer / habeeb
NPV is NET Present Value, it is a standard method to
measure the time value of money to appraise long-term
projects. Its also called as Net Present worth.
PBP is PayBack Period, measures the time required for the
cash inflows to equal the original outlay. It measures
risk, not return.
| Is This Answer Correct ? | 31 Yes | 1 No |
Answer / khushboo
NPV tells the sum of all the present value if the cash
inflows while payback period tells that How many years will
it take for the cash inflows to pay the original cost of
the investment.
| Is This Answer Correct ? | 9 Yes | 2 No |
Answer / vikram
cash in flows - cash out flows = NPV ( + or - )
PBP is the period at which the invested amount on the
longterm assets will get back by the company
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / nagaveni.c
NPV means net present value
present values of all future cash inflows are less from the
all future cash outflows.
PBP means pay back period
time period required to compleate recovery of the initial
investment in the project
| Is This Answer Correct ? | 4 Yes | 0 No |
i am the student of icwai (intermidiate) What is the tds and how use the different state ..
How can entry made if loan transfer from reliance to tata finance
What is NPV? What is IRR? What is the difference between NPV and IRR method? Which and why among NPV and IRR do you think is more appropriate technique in capital budgeting?
3 Answers Christ University, College School Exams Tests, Deloitte,
Does NAV go up or down when dividend are declared on Mutual funds?
Explain valuation methods of Normal and Abnormal loss
what is the adjusting entry for wages posted twice?
what is quick asset
A company disposed its old asset at rate lesser than its wdv Then how it will recorede and under what account group
tax on raw material is direct expense or indirect expense
proposed devidend is approved by .... options are: A.BOD B.share holder C.SEBI D.general body meeting
what do u mean by comparative budget?
what are the uniform public construction cost accounting act procedures?