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

Quine mecluskey tabulation algorithm, simplify using quine Mccluskey tabula...

simplify using quine Mccluskey tabulation algorithm and find out the number of primes implicants f(a,b,c,d)=(2.3,4,5,13,15)+d(8,9,10,11) in logic design

Replacement analysis of cash flow, Replacement Analysis In the previous...

Replacement Analysis In the previous chapter we have compared various investment alternatives. Two scenarios were considered: single alternative and a set of mutually exclusive

Clippers, WHAT IS THE DIAGRAM OF TWO LEVEL CLIPPER WITHOUT REFERENCE AND EX...

WHAT IS THE DIAGRAM OF TWO LEVEL CLIPPER WITHOUT REFERENCE AND EXPLAIN

Homework, name the functions of the CIPM

name the functions of the CIPM

How do comets get their tails, How do comets get their tails? - Most comet...

How do comets get their tails? - Most comets stay frozen in the outer solar system. Only a few enter the inner solar system where they can grow tails. - When a comet nears the sun

Corporate, Need help with a timed exam

Need help with a timed exam

Coding system, What is the possible problem if there is more than one part ...

What is the possible problem if there is more than one part having the same code?

System engineering approches, how todays manufacturing industry lagging wit...

how todays manufacturing industry lagging with system engineering approaches

What processes shape earth’s surface, Expertsmind.com brings you unique so...

Expertsmind.com brings you unique solution in physicsWhat processes shape Earth's surface? What processes shape Earth’s surface? -Impact craters: bowl-shaped cr

Blasting, Students are to undertake a tunnel blast design for the following...

Students are to undertake a tunnel blast design for the following conditions: • Tunnel is 5.5m wide by 5.5.m high • Rock is a granite with a UCS of 300 MPa • Drill hole diameter is

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