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

Fire evacuation signals, Fi r e evacuation signals: Members of the ...

Fi r e evacuation signals: Members of the public are known not to respond positively to fire evacuation signals. People will often try to ignore the signal and will try to

Differentiate crystalline and amorphous materials, Q.   Differentiate cryst...

Q.   Differentiate crystalline and amorphous materials? (a)Crystalline solids:  Those solids in which the, ions atoms or molecules in a definite regular repeated

Crystal imperfection, Q.   What is crystal imperfection? Briefly discuss ...

Q.   What is crystal imperfection? Briefly discuss all types of point defects in crystals. Ans. The various type of crystal imperfection are as follows: (1)   Point de

Fire protection test, Go to https://blackboard.newhaven.edu/ user: user:...

Go to https://blackboard.newhaven.edu/ user: user:Aaldo6 Pass:1992May239645 Class: fire 2209 Occup safety$ hilt-fire take the test its one hour test multiple choices its due t

Assembly buildings - fire risk assessment, Assembly buildings: Assembl...

Assembly buildings: Assembly buildings are high life risk premises.  People often very densely occupy such buildings and they do so in large numbers so they must be given good

Principles of fire risk assessment, Principles of fire risk assessment: ...

Principles of fire risk assessment: The following principles of FRAs apply in the UK as they do in the USA: justifying assumptions, stating data sources,

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

Water, Dear Sir, Please answer the follwing question . Specs: Filterati...

Dear Sir, Please answer the follwing question . Specs: Filteration Capacity 18000 LPH , Tested pressure 6Kg/Sq.cm, Vertical MS pressure Sand filter(flat ends 6mm thick & di

sweep effects, In the previous discussion, we investigated the static aero...

In the previous discussion, we investigated the static aeroelastic behaviour of straight (unswept) wings. These wings are characterised by an effective decoupling of wing bending a

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