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

Which type of financing is appropriate to each firm?, .which type of financ...

.which type of financing is appropriate to each firm?

Transistor, Examining the circuit of an amplifier you’d find many electrica...

Examining the circuit of an amplifier you’d find many electrical components, of which all play a role only they can fulfill. Among these components, it is the transistor which pla

Bravis lattice, Bravis lattice or Bravis crystal system: The ideas of space...

Bravis lattice or Bravis crystal system: The ideas of space lattice was introduced by Bravis in 1990.According to this there are 14 possible types of space lattices in the seven ba

syed, risks involved in moving from a project-centric mode to a mix of pro...

risks involved in moving from a project-centric mode to a mix of projects and

Aeronautical engineering, what is rigidity modulus?mention its units?

what is rigidity modulus?mention its units?

Audio and video system, why front porch and back porch interval is providin...

why front porch and back porch interval is providing before and after the horizontal simpluses

Commercial buildings - fire protection engineering, Commercial buildings - ...

Commercial buildings - fire protection engineering: The term 'commercial buildings' refers to any buildings that are not residential buildings and that do not fall under the m

Co-ordination number, Q. Define co-ordination number. Ans.CO-ORDINAT...

Q. Define co-ordination number. Ans.CO-ORDINATION NUMBER: The number of atoms which are directly surrounding a given atom is known as coordination number. Number of atoms w

Capital structure, how to identify the capital structure?

how to identify the capital structure?

Aviation legislation - certificate of design, Aviation legislation - Certif...

Aviation legislation - Certificate of Design: During the construction, the manufacturer has to provide the C.A.A. with a Certificate of Design and also a Type Record for th

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