The main objective of such type business products is to support customers to invest or reject such project in financial point of view.
The Net Present Value- NPV- is one of the methodology which will be used as " a dollar received in the future is worth less than a dollar received today" Modern Financial Management by Ross, Westerfield, Jaffe and Jordan.
Payback Period- PBP- Method
PBP is the second method which can be used to find the profitability of such project. Simply, it is the expected period of getting the project's capital back.
The Internal Rate of Return- IRR
Is the most important indication to evaluate the profitability of a project. "The basic rational behind the IRR method is that it provides a single number summarizing the merits of a project"Modern Financial Management by Ross, Westerfield, Jaffe and Jordan.
The Net Present Value- NPV- is one of the methodology which will be used as " a dollar received in the future is worth less than a dollar received today" Modern Financial Management by Ross, Westerfield, Jaffe and Jordan.
Payback Period- PBP- Method
PBP is the second method which can be used to find the profitability of such project. Simply, it is the expected period of getting the project's capital back.
The Internal Rate of Return- IRR
Is the most important indication to evaluate the profitability of a project. "The basic rational behind the IRR method is that it provides a single number summarizing the merits of a project"Modern Financial Management by Ross, Westerfield, Jaffe and Jordan.
No comments:
Post a Comment