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What is the difference b/w NPV and PBP?
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Answer Posted / 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 |
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