NPV , Internal rate of return (IRR ) and profitability index (PI . These concepts are thus discussed in seriatim . Payback period (PP ) Payback period is calculated by determining the length of time required to recover the initial investment (Limes 2003 . Thus , Payback period simply measures the exact amount of time needed for the firm to recoup its initial investment . To determine whether the project is acceptable the firm must have set a standard of acceptable payback period wherein the computed payback period...











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