What is the reason to calculate the payback period and the net present value for a business

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What is the reason to calculate the payback period and the net present value for a business investment? What distinguishes the two?
Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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Entrepreneurship & Small Business Management

ISBN: 978-0133767186

2nd edition

Authors: Steve Mariotti, Caroline Glackin

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