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

Method of calculating the thrust forces-engine performance, Method of calcu...

Method of calculating the thrust forces: The thrust forces or gas loads can be calculated for the engine, or for any flow section of the engine, provided that the areas, pressu

Aircraft Propulsion, An aircraft is flying at a speed of 500 ft/s an altitu...

An aircraft is flying at a speed of 500 ft/s an altitude of 20,000 ft, where the atmospheric temperature and pressure are 447.3°R and 972.5 lbf/ft2, respectively. If the inlet / di

Time base generator, notes of time base generator

notes of time base generator

Methods of forging, Q. Describe briefly the following methods of forging : ...

Q. Describe briefly the following methods of forging : (i) Drop forging (ii) press forging Ans. (i) Drop Forging: It is also called die

Acoustic linings in aircraft engine, Acoustic linings in Aircraft engine: ...

Acoustic linings in Aircraft engine: One method of suppressing the noise from the fan stage of a high by-pass ratio engine is to incorporate a noise absorbent liner around the

Auxiliary power unit oil system, Auxiliary power unit oil System: A sum...

Auxiliary power unit oil System: A sump at the bottom of the gearbox collects the returning oil, in some APU's the rear face of the sump is finned and let into the intake plenu

Java, write a program for remote procedure call using java

write a program for remote procedure call using java

Permeability of moulding sand, Permeability of Moulding Sand is the proper...

Permeability of Moulding Sand is the property of the sand, which permits the gases and steam to escape through the sand mould. For this purpose, the sand must be porous. Permeabil

Liquidity ratios, Liquidity Ratios: The liquidity ratios of the company hel...

Liquidity Ratios: The liquidity ratios of the company help in determining the ability of the company to convert its current or liquid assets readily into cash. Higher the ratios be

Falling weight impact testing , Drop-weight impact towers are frequently us...

Drop-weight impact towers are frequently used to generate low velocity impact damage. Typically, the falling mass will be instrumented, containing a load-cell for measuring the lo

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