THE PAYBACK RULE (PB)
THE PAYBACK RULE (PB) Payback period: the amount of time required for an investment to generate cash flows sufficient to recover its initial cost. A cutoff period is established Payback Rule (PB) method usually use with small investment project. There are two types of cash flows to calculate payback period: For annuity Payback period= initial investment/annual cash inflow For
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