What is the difference b/w NPV and PBP?

Answers were Sorted based on User's Feedback



What is the difference b/w NPV and PBP?..

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

What is the difference b/w NPV and PBP?..

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

What is the difference b/w NPV and PBP?..

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

What is the difference b/w NPV and PBP?..

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

Post New Answer

More Accounting AllOther Interview Questions

How can a Society be converted to a Private Limited Company in the Real Estate Industry and at the same time have the least tax liability upon it's profits earned during the financial year closing

0 Answers  


What is rules of depricaition in company act.or IT act.

1 Answers  


Explain significance of Nastro and Vastro in accounts?

0 Answers  


Explain why cooperative accounting is different from financial accounting?

1 Answers   Meru University of Science & Technology,


define holding company,public company, if the compnay be a public company what will the criteria? asked on 30/7/09

0 Answers   FactSet Systems,






Is the Opening Stok and Closing stock both will appear in the trial balance ?

4 Answers  


Let me know rgarding the registration of partnership firm

1 Answers   Wipro,


WHAT IS Z.B.B. ZERO BASED BUDGET?

10 Answers   Capital IQ,


Expand C N V A T

2 Answers  


What is Demat Account? what is the use of it?

2 Answers  


how we will prepare n file income tax returns for individuals?explain

0 Answers   HCL, OPS, TCS,


How do you handle lack of direction or working in chaos

0 Answers  


Categories