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

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

Digital contactless tachometer, i want to get circuit diagram

i want to get circuit diagram

Medical Optics, what are wavefronts and how are they useful in the field o...

what are wavefronts and how are they useful in the field of optics and medicine?

Math modelling, As an engineering student, the ministry of energy and miner...

As an engineering student, the ministry of energy and minerals has tasked you to help them model equation(s) that can estimate the amount of crude oil in a reservoir. The governmen

Heat conduction on a cooling fin, on metlab

on metlab

Standard cost, Standard cost of the product

Standard cost of the product

LAVOISIER LAPLACE''S LAW, GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATIO...

GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATION OF THERMODYNAMICS TOWARDS CHEMICAL PROCESS

Aviation legislation - air operator''s certificate (aoc), Air Operator's Ce...

Air Operator's Certificate (AOC) A Company operating an aircraft for the purpose of Public Transportation, within the UK, must have an AOC granted to the company, in accordance

Payback period method, Non-discounted cash flow method, Payback period met...

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 in

Architectural graphics, How to draw schiography in a perspective view of an...

How to draw schiography in a perspective view of an object

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