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 |
WHAT IS INDIREDT EXPENSES
what is account & what is finance
Eleven lakh eleven thousand eleven hundred eleven writing in number
You are working in a Company but due to certain reasons you were not able to complete the work given to you on time, so to write a Letter of Apology to your Senior regarding it.
When is a dedit note raised When is an expense booked
What do you means strength of a person in accounting term
can payorder be issued for outstation?if yes then how?should it be account payee?
My company's accountant use two different way to calculate Depreciation,one as per Companies Act and another rate for Income Tax calculation. Why we have to use two way to calculate it? Can we just use one way to calculate?
Expand M O U
What is Split And buy-back?
What is the due date for filing monthly & annual sales tax returns in karanataka
Expand F A Qs