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

Frequency warping, main difference between warping and without warping

main difference between warping and without warping

Cisco, how can i operate cisco switches without packet tracer?

how can i operate cisco switches without packet tracer?

Financial managment, what is the consideration of time importance in financ...

what is the consideration of time importance in financial management? how can time time be adjust illustrate you?

The operational amplifier , The operational amplifier : The integrated ...

The operational amplifier : The integrated circuit operational amplifier is one of the most useful and versatile electronic devices available today.  The name 'operational ampl

#Corporate Finance Homework, #As an investment advisor you have been approa...

#As an investment advisor you have been approached by a client called Ramesh, who wants some help in investment related matters. Ramesh is currently 45 years old and has Rs 6, 00,

Control surface effectiveness and reversal, Control Surface Effectiveness a...

Control Surface Effectiveness and Reversal To discuss the effectiveness and loss of a control surface, we allow a rigid rotation δ of the flap set by a flight control system (o

Matlab, 2. Write a MATLAB program to perform discounted reward value iterat...

2. Write a MATLAB program to perform discounted reward value iteration. Show me the MATLAB code and also an output from your code for solving the problem provided in the data above

Engine cycles, ENGINE CYCLES The two commonly used cycles on which th...

ENGINE CYCLES The two commonly used cycles on which the I.C. engines operate are: 1Otto cycle.         2 Diesel cycle. 1 OTTO CYCLE: theoretical Otto cycle is shown i

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