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

Deformation of metals, Q. Explain the following with reference to deformati...

Q. Explain the following with reference to deformation of metals: (1) Preferred orientation (2) Elastic after effect

Duct with flow control-aircraft maintenance, Duct With Flow Control-Aircraf...

Duct With Flow Control-Aircraft maintenance: BERNOULLI'S THEOREM This theorem can be related to the relationship between pressure and velocity existing in the air flowing

Engineering mechanics, types of couple

types of couple

The integrator, Integrator This circuit performs the calculus operation...

Integrator This circuit performs the calculus operation of integration. An operational amplifier with negative feedback applied via a capacitor (instead of a resistor) will pe

Mode ii interlaminar fracture , The Mode II fracture toughness is measured ...

The Mode II fracture toughness is measured using the ENF Typically, the specimen length is 120 mm, the width B is 20 mm, the thickness is between 3 and 5 mm and the distance be

Energy emissions per usage, Q. The Energy related CO 2 emissions per usage...

Q. The Energy related CO 2 emissions per usage are in Florida: What is the CO 2 emission in kg/kWh and in lb/kWh in Florida? Knowing the emissions and the total gene

Heat transfer, A 2-m long section of a 3-mm in diamter wire is maintained a...

A 2-m long section of a 3-mm in diamter wire is maintained at a constant surface temperature of 370C. The wire is subject to a cross-flow of air at 30C at 6 m/s Determine the rate

Contemporary enginnering economics, 10.13

10.13

Plumbing, use of bushing

use of bushing

Neutral points of a bar magnet , Fix a drawing paper on a drawing board wit...

Fix a drawing paper on a drawing board with help of drawing pins. Place a magnetic needle on the drawing paper to identify geographical north and south poles. Mark north, sou

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