Just subscribed to your channel. Thank you for making this video. You helped me save time reading my lessons because you explained the concepts well. Keep on uploading videos like this. Simple yet very informative.
I am in an MBA course online and currently have to read through the book and read the course materials to learn the financial concepts. This can be a challenge since no lectures are available. I have been using online videos like (MBAbullshit.com) to learn the concepts. By far these videos are the BEST I have found and really helped me understand key concepts. The way it is explained and the flow of the video is amazing. Keep up the good work!!!
thanks man, I was actually struggling with the formular to use after determining the years of payback period....I would perhaps reffert to it as months. I do not like to use excel because it seems like it doesn't get me anywhere near the waters behind the hard rock.
Hi very nice and easy to get to know the formula, can i ask you if the question have scrap value how to do the calculation, capital investment 9.3m, scrap value 1m, the 1year 2,200,00, 2year 1,300,000, 4 year 4,700,000 and 5 year 2,100,000 how to calculate this, please help me
Why is discount factor not considered which calculating pay back period ? got this doubt after seeing videos of NPV and IRR ? Please help me to understand. Thanks for the above video.
NPV and Payback are just two different ways companies can value their investments/projects.The biggest weakness of Payback, which you stated, is the very fact that this method does not take into account inflation or the cost of capital. The biggest drawback with using NPV is how one comes to their assumptions, such as the discount rate. If one gets this assumption wrong, the whole equation is wrong which could lead to very costly and bad investments. Many times people will use both of these methods together to make important management decisions and mitigate the risk associated with using each method by itself.
My school is literally just giving us lessons without explaining them so we have to self study this us a huge help thank youuu
Thanks buddy. Every single element of your videos is simply masterclass!
this has added more light in many grey areas i had.....good job anx
OMG this just helped with my homework! I was on the brink of tears!!
I'm doing MBA, as the nurse the business language is toxic and Financial Management is even worse,but your videos are very helpful,thank you very much
I am doing CMA from India and your videos are helping me alot. Thanks for your lectures 😊
Just subscribed to your channel. Thank you for making this video. You helped me save time reading my lessons because you explained the concepts well. Keep on uploading videos like this. Simple yet very informative.
I am in an MBA course online and currently have to read through the book and read the course materials to learn the financial concepts. This can be a challenge since no lectures are available. I have been using online videos like (MBAbullshit.com) to learn the concepts. By far these videos are the BEST I have found and really helped me understand key concepts. The way it is explained and the flow of the video is amazing. Keep up the good work!!!
Videos make it so easy to follow.
Thank you!
your channel helped me a lot for my final exams.
Very helpful and simplified video
Great job explaining this.....Thank you so much!
thanks man, I was actually struggling with the formular to use after determining the years of payback period....I would perhaps reffert to it as months. I do not like to use excel because it seems like it doesn't get me anywhere near the waters behind the hard rock.
The investment cost should be divided by the contribution margin rather than the money generated (revenue), otherwise you need to PV future cash flows
You are very talented
You are a good teacher.
thanks a lot! it s really helpful
Well Done mate
very helpful thanks so much
Your videos are very helpful
Thanks, so helpful
Hi very nice and easy to get to know the formula, can i ask you if the question have scrap value how to do the calculation, capital investment 9.3m, scrap value 1m, the 1year 2,200,00, 2year 1,300,000, 4 year 4,700,000 and 5 year 2,100,000 how to
calculate this, please help me
Thank you so much
Hi how do you work out a payback period should the cashflows be more than the 5year period? Must you work it out?
Why is discount factor not considered which calculating pay back period ? got this doubt after seeing videos of NPV and IRR ? Please help me to understand. Thanks for the above video.
NPV and Payback are just two different ways companies can value their investments/projects.The biggest weakness of Payback, which you stated, is the very fact that this method does not take into account inflation or the cost of capital. The biggest drawback with using NPV is how one comes to their assumptions, such as the discount rate. If one gets this assumption wrong, the whole equation is wrong which could lead to very costly and bad investments. Many times people will use both of these methods together to make important management decisions and mitigate the risk associated with using each method by itself.
How about if we have two projects and we must select one but both produces the same payback, how would we choose than ?
You are very helpful.
Wonderful
Thanks. ......it helps me a lot...
Good
Its sad that your better at explaining this concept than finance professor