Payback techniques

Payback techniques

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 8: Basics of Capital Budgeting

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of payback techniques.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Payback period
• Discounted payback
• Merits and limitations

Detailed Microsyllabus

1. Payback period

   1. Accumulate undiscounted project cash flows.
   2. Calculate the recovery period for even or uneven flows.
   3. Interpret a stated decision cutoff.

2. Discounted payback

   1. Discount cash flows before accumulation.
   2. Compare with ordinary payback.
   3. Merits and limits including excluded later cash flows.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.