We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Payback without apology.
- Authors
Boyle, Glenn; Guthrie, Graeme
- Abstract
When interest rates are uncertain, the net-present-value threshold required to justify an irreversible investment is increasing in the length of a project's payback period. Therefore, slow-payback projects should face a higher hurdle than fast-payback projects, just as investment folklore suggests. This result suggests that the widely disparaged use of payback for capital budgeting purposes can be an intuitive response to correctly perceived costs and benefits.
- Subjects
PAYBACK method; NET present value; PROJECT management; COST analysis; FINANCIAL management; MATHEMATICAL models; BUSINESS planning; RESEARCH methodology; ACCOUNTING
- Publication
Accounting & Finance, 2006, Vol 46, Issue 1, p1
- ISSN
0810-5391
- Publication type
Article
- DOI
10.1111/j.1467-629X.2006.00158.x