Month: November 2021

Between mutually exclusive projects having similar return, the decision should be to invest in the project having the shortest payback period. Management uses the payback period calculation to decide what investments or projects to pursue. The payback period is the amount of time it takes to break even on an investment. The appropriate timeframe for […]

The difference between the present value of the cash inflows and the present value of cash outflows is known as net present value (NPV). As you can see, the net present value formula is calculated by subtracting the PV of the initial investment from the PV of the money that the investment will make in […]

Building trust and a collaborative relationship with your customer will help on the path toward securing better terms. Typically, invoices provide for 30 days of credit, though some larger companies even go as high as 120 days. Longer payment terms lead to higher debt ratios which can be fatal to a company’s finances. The template will […]