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

WAVE ANALYZERS, TELL ME THE WORKING OF BASIC WAVE ANALYZER WITH DIAGRAM

TELL ME THE WORKING OF BASIC WAVE ANALYZER WITH DIAGRAM

Deadlock based problem in operating system, Deadlock based problem in opera...

Deadlock based problem in operating system# Deadlock usually occurs between a known set of processes that end up waiting on each other. If we cannot prevent or avoid deadlock, anot

Specific air range & specific endurance , Specific Air Range & Specific End...

Specific Air Range & Specific Endurance  Key cruise parameters are Range (distance flown) and Endurance (time of flight). It is important to be able to relate these to the amou

Aerodynamics-flow model diagram , We will need to use several different flo...

We will need to use several different flow models as we go along. It is crucial to understand the simplifications used to obtain these models because these limit the validity of th

Fiber optics, 1. A very narrow laser beam in air is shone into a sphere of ...

1. A very narrow laser beam in air is shone into a sphere of solid glass that has a uniform refractive index n>1 and radius ? . The beam makes an angle a in air with the normal to

Personal Financial Management Math College Level, How do you find initial m...

How do you find initial monthly payment for the second year after an adjustable-rate mortgage?

Pn junction diode, what is the effect of temperature on pn junction diode o...

what is the effect of temperature on pn junction diode of component

Frequency warping, main difference between warping and without warping

main difference between warping and without warping

Applications of De, What are the applications of de.moivres theorem in soft...

What are the applications of de.moivres theorem in software engineering,computer science,programming and computer engineering? if there are any applications,then,what are that?

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