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

Evaporation, 2-17 Given a wind speed of 5.0 m/s at 2 m above the ground and...

2-17 Given a wind speed of 5.0 m/s at 2 m above the ground and a roughness length of 0.8 cm, compute (a) the friction velocity, in centimeters per second, and (b) the wind speed, i

Detect the percolation by GUI Matlab, the percolation should be visualize ,...

the percolation should be visualize , and the path of the sphere also. i wanna see the relationship between the number of sphere & the percolation . change the # of sphere and show

How does plane diffraction grating forms a spectrum?, Q.  With necessary t...

Q.  With necessary theory explain the formation of spectrum by a plane transmission grating when composite light falls on it OR How does plane diffraction grating for

Subtractive rapid prototyping process and additive process, Q.4 Explains su...

Q.4 Explains subtractive rapid prototyping process and compare with additive process.                                                   OR What are additive and su

Dynamic model of pitching motion , It is instructive to investigate the pit...

It is instructive to investigate the pitching motion caused by a disturbance from trim due to a control surface deflection. We shall assume that the velocity remains constant, and

Finance ass, Let C(K) denote a European vanilla Call option with strike pri...

Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

Resection, method of solving resection

method of solving resection

Heat treatment of cast iron, how does a cast iron cooling curve look,effect...

how does a cast iron cooling curve look,effect of heating temp, duration also cooling rate

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