cash payback method

简明释义

现金回收法

英英释义

例句

1.Management prefers the cash payback method 现金回收法 as it simplifies decision-making processes.

管理层更喜欢现金回收法 cash payback method，因为它简化了决策过程。

2.The company decided to use the cash payback method 现金回收法 to evaluate the feasibility of their new project.

公司决定使用现金回收法 cash payback method 来评估他们新项目的可行性。

3.The cash payback method 现金回收法 is especially useful for short-term investments.

对于短期投资，现金回收法 cash payback method 特别有用。

4.Using the cash payback method 现金回收法, we determined that the project would break even in three years.

通过使用现金回收法 cash payback method，我们确定该项目将在三年内收支平衡。

5.Investors often prefer the cash payback method 现金回收法 because it provides a clear timeline for return on investment.

投资者通常更喜欢现金回收法 cash payback method，因为它提供了明确的投资回报时间表。

作文

The concept of the cash payback method is a crucial financial tool that businesses utilize to evaluate the viability of an investment. This method calculates the time required for an investment to generate cash flows sufficient to recover the initial investment cost. Essentially, it answers the question: how long will it take for an investor to get back their money? The cash payback method is particularly popular among businesses due to its simplicity and ease of understanding.To illustrate, consider a company that invests $100,000 in a new project expected to generate $25,000 annually. Using the cash payback method, one would determine that it would take four years to recoup the initial investment, as $100,000 divided by $25,000 equals four. This straightforward calculation helps businesses quickly assess whether an investment is worthwhile.However, while the cash payback method offers a clear picture of the time frame for recovering costs, it has its limitations. One significant drawback is that it does not take into account the time value of money. This means that it treats all cash flows as equal, regardless of when they occur. In reality, a dollar received today is worth more than a dollar received in the future due to inflation and opportunity costs. Therefore, relying solely on the cash payback method might lead to misleading conclusions about an investment's profitability.Moreover, the cash payback method ignores cash flows that occur after the payback period. For instance, if the same project continues to generate cash flows for many years beyond the initial recovery period, this potential profit is not reflected in the payback calculation. Consequently, a project with a longer payback period but higher overall returns could be overlooked simply because it does not meet the short-term recovery criteria set by the cash payback method.Despite these limitations, the cash payback method remains a valuable starting point for investment analysis, especially for small businesses or projects with high uncertainty. It provides a quick assessment of risk, allowing investors to make informed decisions about where to allocate resources. Additionally, it can serve as a preliminary filter before employing more complex methods like net present value (NPV) or internal rate of return (IRR).In conclusion, the cash payback method is a foundational concept in investment analysis that aids businesses in determining the feasibility of their projects. While it has certain shortcomings, particularly regarding the time value of money and long-term cash flow considerations, it still serves as an essential tool in the financial decision-making process. Understanding the cash payback method equips investors with the knowledge to make more informed choices, ultimately leading to better financial outcomes for their enterprises.

现金回收法是企业用来评估投资可行性的关键财务工具。该方法计算投资产生足够现金流以收回初始投资成本所需的时间。简而言之，它回答了一个问题：投资者需要多长时间才能收回他们的钱？由于其简单性和易于理解，现金回收法在企业中尤其受欢迎。举个例子，考虑一家企业投资10万美元于一个预计每年产生2.5万美元的新项目。使用现金回收法，可以确定收回初始投资需要四年，因为10万美元除以2.5万美元等于四。这种简单的计算帮助企业迅速评估投资是否值得。然而，尽管现金回收法提供了收回成本的时间框架的清晰图景，但它也有其局限性。一个显著的缺点是它不考虑货币的时间价值。这意味着它将所有现金流视为相等，无论它们何时发生。在现实中，今天收到的一美元比未来收到的一美元更有价值，因为通货膨胀和机会成本。因此，仅依赖现金回收法可能导致对投资盈利能力的误导性结论。此外，现金回收法忽略了在回收期之后发生的现金流。例如，如果同一项目在初始回收期后继续产生现金流多年，这种潜在利润在回收计算中没有反映出来。因此，一个回收期较长但整体回报较高的项目可能会被忽视，仅仅因为它未能满足现金回收法设定的短期回收标准。尽管存在这些限制，现金回收法仍然是投资分析的有价值的起点，尤其对于小型企业或高不确定性的项目。它提供了风险的快速评估，使投资者能够就资源分配做出明智的决策。此外，在采用更复杂的方法如净现值（NPV）或内部收益率（IRR）之前，它可以作为初步筛选。总之，现金回收法是投资分析中的基础概念，帮助企业确定其项目的可行性。尽管在时间价值和长期现金流考虑方面存在某些不足，但它仍然是财务决策过程中不可或缺的工具。理解现金回收法使投资者具备做出更明智选择的知识，最终为他们的企业带来更好的财务结果。