The payback method
ID:CVPMT
Video Overview
The financial manager needs to make decisions regarding the entity's investments in non-current assets. These types of decisions are known as capital budgeting. There are various techniques that are used to make these decisions based on which projects will add value to the firm. Capital budgeting decisions can be made regarding a single project or mutually exclusive projects. Mutally exclusive projects occur where only one of the possible alternatives can be chosen. In this tutorial, we will focus on the payback method.
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