Examlex
Match the following:
-Phalanges
Payback Method
An investment appraisal technique that calculates the time required to recover the initial investment from the cash inflows generated by the investment.
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.
Cost Recovery
The process of recuperating the expenses incurred on an asset through depreciation deductions or when the asset is sold.
Profitability Index
A financial metric that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.
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