Post by account_disabled on Mar 10, 2024 1:13:04 GMT -5
Discounted Payback Period in Investment Project Analysis Finally we would like to mention a criterion used in special circumstances. We are referring to the discounted payback period or payback period. In this case we would not measure the profitability of the investment but rather the time required for the updated value generated by the investor to equal the value of the invested capital. Therefore, we need to calculate the time to pay back the investment and choose projects with a shorter payback period.
This is a method used during times of crisis or social unrest where the recovery of investments is threatened. period after which the value is produced. In short, companies must choose investment projects that best suit BTC Users Number Data their strategies to seek competitive advantage but cannot ignore their economic returns. The analysis is based on discounts incurred over the entire useful life and takes into account that the cash outlay associated with an investment is typically concentrated in the initial phase. Particularly important with this approach is the correct selection of the costs that form part of the initial investment as they will have a strong impact on the calculation of profitability.
The inclusion of sunk or sunk costs or costs that do not correspond strictly to the project may change the calculation and influence the selection of unprofitable projects. Once identified the analyst relevant to the project can use different methods to support his decision but he is the only one responsible. New Call to Action About the Last Entry Fernando Belmonte Fernando Belmonte holds a degree in Economics and Business Sciences and is also an Auditor of Official Accounts. His career developed in the field of business management and economics and finance.
This is a method used during times of crisis or social unrest where the recovery of investments is threatened. period after which the value is produced. In short, companies must choose investment projects that best suit BTC Users Number Data their strategies to seek competitive advantage but cannot ignore their economic returns. The analysis is based on discounts incurred over the entire useful life and takes into account that the cash outlay associated with an investment is typically concentrated in the initial phase. Particularly important with this approach is the correct selection of the costs that form part of the initial investment as they will have a strong impact on the calculation of profitability.
The inclusion of sunk or sunk costs or costs that do not correspond strictly to the project may change the calculation and influence the selection of unprofitable projects. Once identified the analyst relevant to the project can use different methods to support his decision but he is the only one responsible. New Call to Action About the Last Entry Fernando Belmonte Fernando Belmonte holds a degree in Economics and Business Sciences and is also an Auditor of Official Accounts. His career developed in the field of business management and economics and finance.