Cash flow is the movement of money into or out of a business, project, or financial product. It is typically measured during a specified, limited period of time. Quantity of cash flow can be used for calculating other parameters that give information on a company’s value and situation.
Payback Period Method for Capital Budgeting Decisions: Learning Objectives of the Article: Define and Explain payback period. Determine the payback period for an investment project. What are the advantages and disadvantages of Payback method? Definition and Explanation: The payback is another method to evaluate