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

Comparator, Comparator A comparator is a device, which compares two inp...

Comparator A comparator is a device, which compares two input voltages and indicates at the output, which of the two is the larger.  Basically, the circuits use a differential

Archimedes Screw, How to I make my archimedes screw work?

How to I make my archimedes screw work?

Longitudinal trim, A trimmed flight condition is perhaps best thought of as...

A trimmed flight condition is perhaps best thought of as an equilibrium condition. The simplest trim condition is straight-and-level flight, in which the forces (weight, propulsive

Means of escape from trains - railway inspections, Means of escape from tra...

Means of escape from trains - railway inspections: The means of  escape from  trains is also considered  in  NFPA130.     Some  of  the considerations are: At least two eme

Corrosion cracking, offer an explanation for why cracking might have occurr...

offer an explanation for why cracking might have occurred. Give at least three suggestion on how to prevent this type of corrosion. You may supple with appropriate figures

Telecom engg, the project those see in the matlab project which in the voic...

the project those see in the matlab project which in the voice of different birds

Circuit, I am looking for a circuit similar to a schmitt trigger which use ...

I am looking for a circuit similar to a schmitt trigger which use a varying capacitive input and provided a varying frequency output.

Germanium, why germanium become intrinsic at high temperature

why germanium become intrinsic at high temperature

Organic, What happened when melonic acid heated

What happened when melonic acid heated

Robotics, how to become robotics engneer

how to become robotics engneer

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