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 unity gain follower, The unity gain follower: The somewhat lengthy ...

The unity gain follower: The somewhat lengthy term operational amplifier will now be dropped and it will be referred to, as most people do, simply as the op amp. The simplest

[email protected], First page rankings on Google We can put...

First page rankings on Google We can put your website on 1st page of Google to drive relevant traffic to your site. Let us know if you would be interested in getting detailed prop

Logic gates - and gate, Logic gates - and gate: Figure shows the symbol...

Logic gates - and gate: Figure shows the symbol that represents 2 input AND gate together with its truth table. This gate will only adopt a 1 state at its output terminal when

Logic gate -xor gate, 'Exclusive or' gate: The basic OR gate illustrate...

'Exclusive or' gate: The basic OR gate illustrated previously in Figure 3 was seen to include the AND operation in that its output will adopt the 1 state not only when either i

Alternative escape routes - means of escape, Alternative escape routes: ...

Alternative escape routes: Does everyone have access to the alternative routes or do some people have no choice about which way they go? Are all the escape routes

#magnetic circuit, an iron ring with amean dia of 50 cm has an air gap of 1...

an iron ring with amean dia of 50 cm has an air gap of 1mm awinding of 200 turns if the permeability of the iron is 400 when a circuit of 1.25A flows through the coil find the flux

Linear programming, Gandhi Textile company produces shirts and pants.The sh...

Gandhi Textile company produces shirts and pants.The shirts demands for the following two months are 10 and 12 units,whereas the demand for pants are 14 and 15.The capacity for fab

Vertical shaft rotary kiln method, Explain the process of manufacturing ord...

Explain the process of manufacturing ordinary Portland cement by vertical shaft rotary kiln method and write chemistry of hardening and setting of it with chemical equations. D

Composition of two simple harmonic motion at straight line, show the practi...

show the practical use of it also descibe it elaborately why it is useful which way we can use it where we use it

Measurements and instruments, Relation between dissipation factor and Q fa...

Relation between dissipation factor and Q factor

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