Professional Documents
Culture Documents
Budgeting Techniques)
Chapter 4
1.Unsophisticated
Capital
1.1. AVERAGE RATE OF RETURN
Budgeting
Techniques
Pb = payback period
n = number of years when
we find that the investment
left to be recovered is less
than the cash flow of the
following year;
Irn = the investment to be
recovered in n year;
CFn+1 = cash flow from the
n+1 year