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Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Payback occurs when [...]

Answer

the cumulative net cash flow equals 0.

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Payback occurs when [...]

Answer

?

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Payback occurs when [...]

Answer

the cumulative net cash flow equals 0.

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Payback occurs when the cumulative net cash flow equals 0.

#### Original toplevel document

**Subject 3. Investment Decision Criteria**

ancial calculator is needed to solve for IRR. The IRR for Project A is 18.32% and for Project B is 15.03%. Payback Period This is the expected number of years required to recover the original investment. <span>Payback occurs when the cumulative net cash flow equals 0. Decision rules: The shorter the payback period, the better. A firm should establish a benchmark payback period. Reject if payback is greater than benchmark. &#

Payback occurs when the cumulative net cash flow equals 0.

ancial calculator is needed to solve for IRR. The IRR for Project A is 18.32% and for Project B is 15.03%. Payback Period This is the expected number of years required to recover the original investment. <span>Payback occurs when the cumulative net cash flow equals 0. Decision rules: The shorter the payback period, the better. A firm should establish a benchmark payback period. Reject if payback is greater than benchmark. &#

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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