3.8 Advantages and Disadvantages Investment Appraisal

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/3

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 6:50 PM on 4/10/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No analytics yet

Send a link to your students to track their progress

4 Terms

1
New cards

Benefits of using Payback Period

only relies on cash flow forecasts, which are estimates
simplicity

2
New cards

Limitations of using Net Present Value

ignores the long-term profitability of an investment
assumes future cash flows have the same value as those of today
different businesses will weigh up the payback period differently

3
New cards

Benefits of Net Present Value

considers the change in value of money over time
compare opportunities with different investment periods.

4
New cards

Limitations of of Net Present Value

more complex to calculate
assumptions have to be made about the future value of money