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

Vertical spread, What are the no-arbitrage lower bound, and the no-arbitrag...

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread

ENGINEERING SURVEYING., OBTACLES IN CHAIN SURVEYING.

OBTACLES IN CHAIN SURVEYING.

Heat conduction on a cooling fin, on metlab

on metlab

Extrusion, Extrusion : In this method of forging, the metal slug is forced...

Extrusion : In this method of forging, the metal slug is forced to pass through a die under the action of intense of hydraulic pressure. The process can be viewed as squeezing the

Barrier potential, Ask question #Minimum 100 words acwhat are the polaritie...

Ask question #Minimum 100 words acwhat are the polarities of barrier potential cepted#

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

Friction welding techniques, Q. Explain briefly the Friction welding techni...

Q. Explain briefly the Friction welding techniques. OR Discuss any two solid state welding methods.

Market segmentation analysis for an organization, 1. Briefly explain how to...

1. Briefly explain how to conduct a market segmentation analysis for an organization. Answer: There are a number of ways by which the market segmentation analysis of an organizatio

Programming, A charitable organization wants to design a special ATM machin...

A charitable organization wants to design a special ATM machine to be used by needy people. The association supplies the needy person with a pin number to be able to use the ATM

Chemical engineering, i got an assignment on chemical engineering reactions...

i got an assignment on chemical engineering reactions

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