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

Numeric computation matlab, Expertsmind.com offers Performing Numeric Comp...

Expertsmind.com offers Performing Numeric Computation matlab assignment help MATLAB contains numbers, precise, and technological innovation features to support all common tech

Operations research 1, oilcois building a refinery to procduce four product...

oilcois building a refinery to procduce four products diesel, gasoline

Engineering physics 1, scaning electro microscope,transmission microscope

scaning electro microscope,transmission microscope

Optimization, Wild west produces two types of cowboy hats. Type 1 hat requi...

Wild west produces two types of cowboy hats. Type 1 hat requires twice as much labor time as a type 2. If all the available labor time is dedicated to type 2 alone, the company can

Homework, Please explain how risk is taken into account for a financial ins...

Please explain how risk is taken into account for a financial instrument

Metal cutting tool, how to design a circural form tool on drawing sheet?

how to design a circural form tool on drawing sheet?

Material science and engineeing, cite advantages of forming metal by extrus...

cite advantages of forming metal by extrusion as opposed to rolling

Corporate Strategy, Corporate Strategy Strategy In our earlier discussion...

Corporate Strategy Strategy In our earlier discussion, we made distinctions between merger and acquisition or takeover. However, they generally involve similar analyses and evalu

Cupola, The cupola is the most widely used furnace in the foundry for melti...

The cupola is the most widely used furnace in the foundry for melting ferrous and non ferrous metals and alloys. Various zones of cupola     (i)            Well or crucibl

Finance, Derive the functional relationship between the no-arbitrage values...

Derive the functional relationship between the no-arbitrage values of the two vertical spreads.

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