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

Metallurgy assignment, Hi I need someone to help me to do a metallurgy assi...

Hi I need someone to help me to do a metallurgy assignment

Components of amplifier, Expertsmind.com brings you unique solution in el...

Expertsmind.com brings you unique solution in electrical engineering RESISTORS: Resistors are designed to drop the amount of voltage going through them, this allow

What is accounting management?, What is accounting management? Managemen...

What is accounting management? Management accounting is worried with offering details to supervisors - that is, individuals within a company who immediate and control its functi

Recovery and recrystallization, Q. What is Recovery and Recrystallization? ...

Q. What is Recovery and Recrystallization? Ans. Due to the cold working of metals there arise a large number of dislocations and distortion of planes. Cold working of metals

Corporate finance, An investment project provides cash inflows of $730 per ...

An investment project provides cash inflows of $730 per year for eight years. What is the project payback period if the initial cost is $3,500? What if the initial cost is $5,000?

Spreading function and scattering function, In a CDMA system, the signal is...

In a CDMA system, the signal is spread over a large bandwidth by multiplying the transmitted symbol by a sequence of short pulses, also called chips. The system bandwidth is thus d

Bjt, why we use h for bjt

why we use h for bjt

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