Hi
I need to know if Payback period is virtually the same as simple payback period??
the q was 'what other capital budgeting rule could be used other than NPV rule?' I said SIMPLE PAYBACK PERIOD and it was marked wrong. PAYBACK PERIOD AND DISCOUNTED PAYBACK PERIOD WAS THE ANSWER, I thought it's the same thing? -Please give your thoughts or if you know the answer
:)
there is nothing like simple pay back period. Pay back period is either calculated by discounting the inflows or without discounting.
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