In capital budgeting analyses, the primary difference between the traditional payback period (PB) technique and the discounted payback period (DPB) technique is that the DPB: considers the time value of money.
What is Capital budgeting?
- Companies use capital budgeting to assess large-scale initiatives and investments, such new buildings or machinery. The procedure is examining the cash flows into and out of a project to ascertain whether the anticipated return reaches a predetermined standard.
- The process of evaluating and ranking potential projects to decide which ones merit funding is known as capital budgeting. A high return on investment is the desired outcome.
- The process of deciding how to distribute (invest) the organization's limited capital resources is known as capital budgeting.
To learn more about Capital budgeting refer to:
https://brainly.com/question/24347956
#SPJ4
