Lawrence Technological University Internal Rate of Return Discussion

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Anguna999

Business Finance

Lawrence Technological University

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I need help with a Business question. All explanations and answers will be used to help me learn.

Define the payback, net present value, internal rate of return, and profitability index methods.

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Running head: DEFINITION OF TERMS

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Definition of terms
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DEFINITION OF TERMS

Define the payback, net present value, internal rate of return, and profitability index
methods.

Payback, this refers to the budgeting of the capital to the time required to recoup funds
which are spent in an activity of investing or attaining the point of break-even (Farris et al.,
2010).
Net present value refers to a cash flow series which takes place at different periods. It is
dependent on the time between the present and the cash flow (Armênio de Souza Rangel, José
Carlos de Souza Santos & José Roberto F. Sav...

JevgvatTheh (879)
UC Berkeley

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