What is the difference b/w NPV and PBP?
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Answer / habeeb
NPV is NET Present Value, it is a standard method to
measure the time value of money to appraise long-term
projects. Its also called as Net Present worth.
PBP is PayBack Period, measures the time required for the
cash inflows to equal the original outlay. It measures
risk, not return.
| Is This Answer Correct ? | 31 Yes | 1 No |
Answer / khushboo
NPV tells the sum of all the present value if the cash
inflows while payback period tells that How many years will
it take for the cash inflows to pay the original cost of
the investment.
| Is This Answer Correct ? | 9 Yes | 2 No |
Answer / vikram
cash in flows - cash out flows = NPV ( + or - )
PBP is the period at which the invested amount on the
longterm assets will get back by the company
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / nagaveni.c
NPV means net present value
present values of all future cash inflows are less from the
all future cash outflows.
PBP means pay back period
time period required to compleate recovery of the initial
investment in the project
| Is This Answer Correct ? | 4 Yes | 0 No |
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