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

Explain the instruction format of an assembler, Question 1 What is a compu...

Question 1 What is a computer? Explain the block diagram of a general purpose digital computer Question 2 Explain the instruction format of an assembler Question 3

Biochemical engineering of food, what is biochemical engineering of food

what is biochemical engineering of food

Vectors or matrices matlab, Vectors or matrices MATLAB can make and ope...

Vectors or matrices MATLAB can make and operate arrays of 1 (vectors), 2 (matrices), or more measurements. In the MATLAB language, a vector represents a one perspective (1×N or

Surveying, Write short notes on the overcoming the following obstucal with ...

Write short notes on the overcoming the following obstucal with good leblel diagram 1 RIVER 2.BUILDING 3.DAM

Compressor damage, Compressor Damage Foreign objects often enter engine...

Compressor Damage Foreign objects often enter engine air intakes either accidentally or through carelessness. Items such as pens, pencils cigarette lighters etc. can be drawn o

Fourier’s law of heat conduction, Fourier’s law of heat conduction For one ...

Fourier’s law of heat conduction For one dimension; q(x) = - k dT/dx (2.1) wher

Query about Finite Element Analysis assignment service , Hi, I require a s...

Hi, I require a service which involves finite element modelling on commercial software package "ABAQUS". I am personally not sure how to model this on ABAQUS and thats why I have

Fire alarm systems - look for when inspecting, Fire alarm systems: Fir...

Fire alarm systems: Fire alarm systems can be very complex and it is usually not possible for an enforcing officer to check all the cabling, the components, the software and t

Parallel rationalisation of digital system, how to find cascade

how to find cascade

Single input unbalanced output differential amplifier, dc and ac analysis

dc and ac analysis

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