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

Vectors and Scalar., Application of Vector and Scalar quantities in Vector ...

Application of Vector and Scalar quantities in Vector Analysis subject

Router, how does the Ip message finally reassemble?

how does the Ip message finally reassemble?

QMETER, Explain how a Q-meter can be used to measure resistance inductance ...

Explain how a Q-meter can be used to measure resistance inductance and capacitance??

Depreciation methods in economical engineering, Depreciation Methods T...

Depreciation Methods Technically speaking, U.S. tax law permits deduction from taxable income of a reasonable allowance for wear or tear, natural decay or decline, exhaustion,

Aviation legislation - aircraft weight and balance, AIRCRAFT WEIGHT AND BAL...

AIRCRAFT WEIGHT AND BALANCE - Reference BCAR A5-4 or JAR-25.23 -29 After an aircraft has been constructed, painted and can be said to be ‘representative of its true empty (or

Orthographic drawing, How do you draw in othographics

How do you draw in othographics

The impact and post-impact behaviour of composites , The Impact and Post-im...

The Impact and Post-impact Behaviour of Composites Many early studies involved doing Charpy tests on small notched samples. This is a destructive test of impact resistance, co

Liquid crystal display (lcd), Liquid crystal display (lcd): Liquid Crys...

Liquid crystal display (lcd): Liquid Crystal Displays (LCD) are not actually light sources - they generate no light, merely filtering incident light, in a controlled manner. T

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

Random number Generation, how to generate random numbers in rectangular reg...

how to generate random numbers in rectangular region?

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