BUS 630 Week 5 DQ 1 Capital Investment Evaluation

Capital Investment Evaluation. Select one of the capital investment evaluation methods described in Chapter 10 of your text. Fully explain the capital evaluation method's strengths and weaknesses. Take a position and defend the use of your selected method. Be sure to use at least two scholarly sources to support your position. Your initial post should be 200-250 words.

SOLUTION:

Payback Rule: It is also known as Payback Period, it measures the time required to recover the initial investment from a project. It is useful to be assessed when money is available but with a time constraint.

There are two types of the cash flows even and uneven. Calculation of payback differs in both the cases.

Payback Period in case of even cash flows...