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

Spreading function and scattering function, In a CDMA system, the signal is...

In a CDMA system, the signal is spread over a large bandwidth by multiplying the transmitted symbol by a sequence of short pulses, also called chips. The system bandwidth is thus d

Cupola, The cupola is the most widely used furnace in the foundry for melti...

The cupola is the most widely used furnace in the foundry for melting ferrous and non ferrous metals and alloys. Various zones of cupola     (i)            Well or crucibl

Normal spectrum, Q. What is a normal spectrum? Show that grating spectrum i...

Q. What is a normal spectrum? Show that grating spectrum is a normal spectrum. Ans. Normal spectrum and the dispersive power of grating is defined as the rate of change of a

Small business management, how to calculate the ratio and break-even point ...

how to calculate the ratio and break-even point in one report

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

Means of escape - place of safety, Means of escape - place of safety: ...

Means of escape - place of safety: The means of escape in a building are often supplemented by a fire warning system that may or may not include automatic detection, depending

Power systems, WHY VOLTAGE GENERATED IN MULTIPLES OF 11

WHY VOLTAGE GENERATED IN MULTIPLES OF 11

End centered tetragonal lattice in the bravis list, Q.  There is no end ce...

Q.  There is no end centered tetragonal lattice in the bravis list, but there is an end centered orthorhombic lattice. Explain why this is so? Ans.  A tetragonal system is

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