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

The ideal operational amplifier, THE IDEAL OPERATIONAL AMPLIFIER Althou...

THE IDEAL OPERATIONAL AMPLIFIER Although the characteristics of an ideal operational amplifier are unattainable, modern integrated circuit types can provide an extremely close

Numerical method, find the newton raphson iterative formula for a reciproca...

find the newton raphson iterative formula for a reciprocal of a number N and hence find the value of 1/23.correct to 5 place of decimal

Oil supply failure - propeller, Oil supply failure - Propeller: To prev...

Oil supply failure - Propeller: To prevent an overspeed caused by an oil supply failure, one of two methods may be employed: • Hydraulic lock valve The pitch lock mecha

Difference between soldering, Q. What are the differences between soldering...

Q. What are the differences between soldering, brazing and welding? Ans. S.No. Welding Soldering Brazing

Aircraft engine, what is the basic operation of gas turbine engine?

what is the basic operation of gas turbine engine?

Npn and pnp, different operating modes of npn transistor

different operating modes of npn transistor

Circuit Problem, Please solve this problem fully http://i39.tinypic.com/6...

Please solve this problem fully http://i39.tinypic.com/64h3kl.png

Java, write a program for remote procedure call using java

write a program for remote procedure call using java

Plant, What isplant

What isplant

Inner rooms - means of escape, Inner rooms - means of escape: I nner...

Inner rooms - means of escape: I nner rooms are rooms from which the means of escape require people to travel through another room (called the access room). These are comm

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