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

Commented carbides, Q. What are the commented carbides? How are they proces...

Q. What are the commented carbides? How are they processed? Ans. These are very important products of powder metallurgy and finds wide applications as cutting tools, wir

Blending or mixing, To achieve successful results in powder metallurgy the ...

To achieve successful results in powder metallurgy the metallic powder must be thoroughly homogenized. The term blending and mixing are both used in this content. Blending refers t

Java , why we need EJB

why we need EJB

Allowances for pattern, Allowances for pattern : A pattern is always made ...

Allowances for pattern : A pattern is always made larger than the required size of the casting in order to allow for various factor, such as shrinkage, machining, distortion and r

VISIBLE LIGHT COMMUNICATION, Ask question #Minium 100 words accepted#RELATE...

Ask question #Minium 100 words accepted#RELATED QUESTION THAT CAN BE ASKED IN DEFENSE

Piezoelectric accelerometer, Piezoelectric Accelerometer Piezoelectric ...

Piezoelectric Accelerometer Piezoelectric accelerometers are widely used for vibration measurements due to their low cost and very wide frequency range for which the sensitivit

Finance question, Say that a buyer of bonds values good bonds at $500 and v...

Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers and bad s

Manufacturing definition and its importance, Economic Definition :  Manufa...

Economic Definition :  Manufacturing increase the value of product. Technological Definition :  Manufacturing is a process which gives required strength, shape and size of t

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