Understanding the Payback Period as a Quantitative Tool for Investment Decisions

Understanding the Payback Period as a Quantitative Tool for Investment Decisions

Assessment

Interactive Video

Business

University

Hard

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The video tutorial explains how businesses decide on investment projects using quantitative tools like the payback period. It covers how to calculate the payback period for both constant and non-constant cash flows, and discusses the advantages and risks associated with this method. The tutorial emphasizes the importance of considering business context and potential changes in circumstances that could affect cash flow assumptions.

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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