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

Effects of temperature and altitude on engine, Effects of Temperature and A...

Effects of Temperature and Altitude. Cold and/or Low On cold days the air density will increase. If the engine has a ‘part throttle rating' and the throttle is advanced to

Barometric lag, My question is that i am working in a petrochemical plant w...

My question is that i am working in a petrochemical plant where in final stage disc ring reactor the barometric lag is chocked completely the system is under vacuum if i introduce

Engineering mechanics, a circular roller of radius 10cm and of weight 1.8kn...

a circular roller of radius 10cm and of weight 1.8kn rest on a smooth horizontal surface

Where do you think by djia?, Where do you think by DJIA? Nobody knows th...

Where do you think by DJIA? Nobody knows the respond to this one. However, you should at least have some ideas on the topic and be able to communicate why you think this is the

Hp air for aircraft services, Hp air for aircraft services: A number of...

Hp air for aircraft services: A number of aircraft accessories produce sufficient heat in normal use to require a cooling system to prevent overheating. A good example is the

Testing permeability of moulding sand, Q. Describe the complete procedure o...

Q. Describe the complete procedure of testing permeability of moulding sand. How is permeability influenced by various parameters of the moulding sand ? Ans. Permeability

Plane transmission diffraction grating, A diffraction grating is an optical...

A diffraction grating is an optical element that diffracts light into its constituent wavelength (colors). It is an excellent device used in laboratory to study the spectra. Co

Car parking control system programming, I have to develop a program for car...

I have to develop a program for car parking control system program on assembly language using AT89C51,please help me with it

Write Your Message!

Captcha
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!

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