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

Matlab coding, create 22 elements in scalar hint:for loop or any loop state...

create 22 elements in scalar hint:for loop or any loop statement and append to previous variable element by elements

Electromagnetic spectrum , Electromagnetic Spectrum: Visible light belo...

Electromagnetic Spectrum: Visible light belongs to a family of waves known as the electromagnetic spectrum. Other members of this family include high frequency short wavelength

Cathode ray tube (crt), Cathode ray tube (crt): Displays of this type, ...

Cathode ray tube (crt): Displays of this type, which are based on the electron beam scanning technique, have been used in aircraft for many years.  They were first used to disp

What is treasury bills?, What is Treasury Bills? Treasury expenses are o...

What is Treasury Bills? Treasury expenses are one of the finance devices in temporary money market. It is unprotected promissory observe from the govt part of the RBI to satisfy

Financial Econometrics, In this assignment you are asked to demonstrate you...

In this assignment you are asked to demonstrate your understanding of both exploratory and statistical inference techniques described in class to investigate how the currency marke

Replacement analysis of cash flow, Replacement Analysis In the previous...

Replacement Analysis In the previous chapter we have compared various investment alternatives. Two scenarios were considered: single alternative and a set of mutually exclusive

Multi-threading problem in operating system, multi-threading problem in ope...

multi-threading problem in operating system 9. With multi-threading, each thread has its own value for the program counter, its own register save area, and its own stack, but all 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