Explain the Payback Period Method for Evaluating Capital Expenditures

question 38

Essay

Explain the payback period method for evaluating capital expenditures.What are the disadvantages and advantages of this method?

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Definitions:

Trust Instruments

Legal documents establishing a trust, specifying its terms, and the responsibilities of the trustees.

Personal Representative

The person designated by a testator to collect the testator’s property after he or she dies, pay the debts and taxes, and make sure the remainder of the estate gets distributed.

Beneficiaries

Individuals or entities designated to receive benefits or assets from a will, trust, insurance policy, or other legal instrument.

Undue Influence

The situation in which one person takes advantage of his or her dominant position in a relationship to unfairly persuade the other person and interfere with that person’s ability to make his or her own decision.