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

FSE, A W12x40 beam is heated to 760°C. Answer the following questions. Wh...

A W12x40 beam is heated to 760°C. Answer the following questions. What is the W/D factor for sprayed protection? What is the W/D factor for box type protection? What is the spe

Seekers , Seekers There are two main types of sensor used in autono...

Seekers There are two main types of sensor used in autonomous vehicles (seekers and position/attitude sensors) - although not all systems have both. - Airc

Application of diodes, half wave rectifier

half wave rectifier

Cro probes, #questiodescribe different types of cro probes

#questiodescribe different types of cro probes

Find the funcation (a).f 0 g , f(x)=x^2 - 1 , g(x)=2x + 1

f(x)=x^2 - 1 , g(x)=2x + 1

Short term instruments, how short term instrumentr are measured

how short term instrumentr are measured

Explain the following spread spectrum techniques, Question : What is th...

Question : What is the ISM band and what is particular about this frequency band? Name two wireless technologies that make use of the ISM frequency band. a) Explain the foll

Communication overhead.., what is communication overhead in networking?what...

what is communication overhead in networking?what are the types of overhead?How to reduce communication overhead in broadcasting?

Wet process of manufacturing of portland cement, What are Portland cement a...

What are Portland cement and its composition? Describe the manufacturing process of cement with diagram. Manufacturing of Portland cement: Dry and Wet Process, Describe the

Finance Project, You are interested in proposing a new venture to the manag...

You are interested in proposing a new venture to the management of your company. Pertinent financial information is given below. BALANCE SHEET Cash 2,000,000 Accounts Payable and

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