Learning Objective
How to apply capital budgeting techniques to make decisions on capital investment?
Learning Outcome
Students would be able to apply payback technique of capital budgeting in a situation where it is highly required.
Question
It is not conceptually preferable to use payback period as a tool to decide about the capital investments but still it is used by the mangers; why it is preferred to select a project when a better tool like NPV is available? And why it should not be considered?
Instructions
§ Answer must be given in bulleted form only.
§ Answer must NOT exceed 100 words.
§ Do not copy or exchange your answer with other students. Two identical/copied comments will be marked Zero (0) and may damage your grade in the course.
§ Obnoxious or ignoble answer should be strictly avoided.
§ Questions/queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over
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