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

Engine protection devices - aircraft engine, Engine protection devices : ...

Engine protection devices : Described below are typical protection devices that will override any excessive demands made on the engine by the pilot or by the control units.

Fire alarm systems - look for when inspecting, Fire alarm systems: Fir...

Fire alarm systems: Fire alarm systems can be very complex and it is usually not possible for an enforcing officer to check all the cabling, the components, the software and t

Flight dynamics - introduction, In the Aircraft Performance course, the air...

In the Aircraft Performance course, the aircraft was assumed to be in a steady-state (e.g. steady  cruise, climb, turn, glide), with the forces and moments balanced. The subject of

Construct the element matrix numerically using the 2, 1. The cantilever bea...

1. The cantilever beam-like structure shown below is modeled using a 2 x 10 mesh of rectangular four-node plane stress elements of equal size. Geometric boundary conditions at x ?

Exhaust section inspection of aircraft, Exhaust Section Inspection. Ins...

Exhaust Section Inspection. Inspection of the exhaust section of the engine can be done visually using an appropriate light source. The exhaust cone and jet pipe are examined

Which type of financing is appropriate to each firm?, .which type of financ...

.which type of financing is appropriate to each firm?

Damping coefficint of canatrd of aircraft, what will be the methodology to ...

what will be the methodology to calculate pitching moment damping coefficient of canrad of aircraft

Manufacturing definition and its importance, Economic Definition :  Manufa...

Economic Definition :  Manufacturing increase the value of product. Technological Definition :  Manufacturing is a process which gives required strength, shape and size of t

Assignment, Real time processing is suitable when it is necesssary to have ...

Real time processing is suitable when it is necesssary to have the latest information in the following types of business operations

Case analysis, Construct the pro forma cash flow statements for Bloomington...

Construct the pro forma cash flow statements for Bloomington Clinics for five years into the future using the data given in the case plus the most likely growth estimates. a. Wha

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