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

Metallurgical engineering, the amount of cold working a metal can withstand...

the amount of cold working a metal can withstand

Rapid Prototyping, Give justification towards the development of Rapid Prot...

Give justification towards the development of Rapid Prototyping?

Fire risk assessment in usa - fire protection engineering, Fire risk assess...

Fire risk assessment in USA: The document NFPA 551:2010 is entitled Guide for the Evaluation of Fire Risk Assessments. In this document is set out the American use of the

Function, what is function independence.on software engineering

what is function independence.on software engineering

Aviation legislation - aircraft weighing, AIRCRAFT WEIGHING NOTE: T...

AIRCRAFT WEIGHING NOTE: The C.A.A. will consider applications from aircraft constructors and operators to weigh certain types of aircraft on a sampling basis. (i.e. repre

Communication, Can u provide some information about simple wireless transmi...

Can u provide some information about simple wireless transmitter and receiver.

Plumbing, what are the most short forms given to materials in plumbing

what are the most short forms given to materials in plumbing

Matlab codes for extended kalman filter, I would like to have simple matlab...

I would like to have simple matlab codes for measuring the changes in amplitude and frequency of pure sinusoidal signal in a disturbed environment and subsequently to show the resu

FOCP, THE USER INTERFACE

THE USER INTERFACE

Opitcal square, how it used in real life..

how it used in real life..

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