Introduction: The bailout payback period considers the time period within which cumulative cash flows are generated by the project after adding cashflows generation from the sale of equipment. Bailout cash flows are the estimates of cash flows inflows that shall arise on sale of equipment at the end of the project. The cash inflows …
Accounting Rate of Return (ARR) Accounting rate of return (ARR) is the return on investment based on specific project. It is calculated by dividing accounting profit after depreciation but before interest and tax (PBIT) with average capital invested. Formula of ARR Average Capital Employed Average capital employed is calculated by taking average …
Introduction: The Payback Period defines the length of time before which the amount invested in the project shall be recovered / received. It is measured in period / time. It is based on cash flows and not on profit. Decision Rule: If expected payback period from the project is within the period determined by the …
The objective of corporate briefing session is to provide suitable and equitable flow of information to shareholders, market analysts and investors. Mandatory requirement for all listed companies: As per PSX Notices and SECP directives, it is mandatory to hold one Corporate Briefing Session (CBS) during the whole financial year by all listed companies including Modarbas …
Introduction: The discounted payback period is calculated by the same way as payback period the only difference is that cash flows are converted into present value. It is the period before which the Present Value of cumulative cash flow becomes zero. Example: Discounted Payback period with even annual cash flow (constant cashflow) A company …
