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

Different types of handover in a gsm network, Question: (a) Cellular sy...

Question: (a) Cellular systems are based on two main types of multiplexing, what are those two types of multiplexing? Explain how they are used to improve channel allocation in

Capacitive transducers, Capacitive transducers Consider a capacitor con...

Capacitive transducers Consider a capacitor consisting of two parallel conducting plates with an insulator in between. Its capictance is C = ε 0 ε r  A/d where ε

Financial management, The role of financial managers in the changing econom...

The role of financial managers in the changing economic scenario

Engineering economy , A project has a first cost of $2000. There is another...

A project has a first cost of $2000. There is another cost at the end of year 1 of $500 and the income for year 3 until 6 year is $1000 per year. If the compounding is quarterly, c

Human Motion Kinetics, Beginning from rest when theta=10 degrees, a 30-kg c...

Beginning from rest when theta=10 degrees, a 30-kg child slides without kinetic friction down the slide which is in the shape of a 2.5 meter circular arc. Determine the child''s sp

Propeller governing mode, Propeller governing mode: The speed lever is ...

Propeller governing mode: The speed lever is placed in the high position. The engine is operating at 97 percent. As the power lever is advanced ahead of the flight idle deten

Zeroth law of thermodymanics, Explain with the aid of sketch of zeroth law ...

Explain with the aid of sketch of zeroth law of thermodynamics

Eng, all projrct is correct excpet for last part it will not fire a table...

all projrct is correct excpet for last part it will not fire a table

High rise buildings - fire protection engineering, High rise buildings: ...

High rise buildings: High rise buildings have their own particular requirements for fire safety and for fire fighting.  Means of escape rely on most people descending the stai

Manual override relays, Manual override relays: When the manual-overrid...

Manual override relays: When the manual-override relays are not energised, this current flows through brushes riding on slip rings mounted on the propeller spinner bulkhead and

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