
Concept explainers
Cash payback method:
Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.
In simple, the cash payback period is computed as follows:
Net present value method is the method which is used to compare the initial
To discuss: The uses of the cash payback period for analyzing the financial performance over the net present value method.

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Chapter 25 Solutions
CengageNOWv2, 2 terms Printed Access Card for Warren/Reeve/Duchac’s Financial & Managerial Accounting, 14th
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