Payback period

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September 25, 2021 at 4:44 pm #636490
youshaali
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Hello sir!
While calculating payback period (discounted & non-discounted both) should we take residual/salvage value in account ?
and same question is for NPV should we calculate present value of any salvage/residual value given in question ?
kindly help me in these question it’s your pleasure.
Thank you!
September 26, 2021 at 10:12 am #636511
John Moffat
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For both the payback period and calculating of the NPV we bring in all cash flows, including any disposal proceeds.
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