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Write down the various capital budgeting models. In financial modeling with spreadsheet?
Can you explain the Payback Period model?
Payback Period is a capital budgeting model that calculates the time it takes for an investment project to recoup its initial investment. It is calculated by dividing the initial investment by the annual cash inflows. Payback Period is used to evaluate the risk of an investment project and to determine whether it fits within a company's budget constraints.