Payback period method, finance, Other Engineering

Payback period method, finance, Other Engineering

Assignment Help:

Non-discounted cash flow method,

Payback period method
In this method, time value of money is not considered. It takes into account the number of years required to recover the initial investment of a project (Harold Bierman, Seymour Smidt, 2006).
Accept Reject Rule:
Accept the project with lowest payback period.
Reject the project with highest payback period.
Merits:
1. Simple and easy to calculate
2. Less costly to use
3. Less time consuming
De-merits:
1. Time value of money is completely ignored.
2. Does not consider the cash flow generated after payback period.

Related Discussions:- Payback period method, finance

Fibre optics communications, explain the fibre optic communication system w...

explain the fibre optic communication system with block diagram

Case Let, This case has been framed in order to test the skills in evaluati...

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer of petroleum and

Difference amplifier, Difference amplifier: Figure shows how two inputs...

Difference amplifier: Figure shows how two inputs can be subtracted. This circuit differs from previous types with negative feedback in that the non-inverting terminal is not

Mine engineering, Students are to undertake a tunnel blast design for the f...

Students are to undertake a tunnel blast design for the following conditions: • Tunnel is 5.5m wide by 5.5.m high • Rock is a sandstone with a UCS of 400 MPa • Drill hole diameter

Econometrics coursework, Hello this is Lee, I have an Econometrics coursewo...

Hello this is Lee, I have an Econometrics coursework to be helped by some experts from your company. Please send me your reply asap Lee

Calculate the heat transfer coefficient , Water is flowing at 0.5 ms-1 acro...

Water is flowing at 0.5 ms-1 across a 7.5 cm diameter sausage at 80°C. If the bulk water temperature is 15°C, estimate the heat-transfer coefficient. a) What type of heat tranfe

What is basic function of subroutine, Question: a) Write the detailed ...

Question: a) Write the detailed operation/description of the following mnemonics: (i) MOVX @DPTR, A (ii) MOVC A, @A + PC (iii) PUSH add b) What is a subroutine and

Thermodynamics, calculate the workdone by a system which contains 10kg of t...

calculate the workdone by a system which contains 10kg of this gas expanding from 1m^3 at temperature of 293k, use the values a=15.7*10Nm^4, b=1.07*10^-2m^3 , R=0.278KJ/Kg-k.

Aggregate properties - voids ratio and bulk density, Aggregate properties ...

Aggregate properties 1.Aim: To compare the bulk density, voids ratio and angularity number of a nominal single sized aggregate when subjected to different levels of compaction

Architectural Design and Drawing, how can I improve my G+4 apartment with r...

how can I improve my G+4 apartment with rendering with pen and ink

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd