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

Risk and return, if we are comparing the risk and return of two stocks. wha...

if we are comparing the risk and return of two stocks. what to calculate, what to analyza and what conclude

Magnetic detector plug debris analysis of aircraft , Magnetic Detector Plug...

Magnetic Detector Plug Debris Analysis of aircraft : The magnetic chip detectors (MCDs), are small, permanent magnets installed in the scavenge/return lines of the engine oil s

Gsm alarm system with video surveillance, i am building the above mentioned...

i am building the above mentioned system and i intend using an arduino board together with the gsm shield. my problem is i don''t know if there is a way i can control a camera by p

Constant speeding propeller, Constant speeding propeller: The definitio...

Constant speeding propeller: The definition of a Constant Speeding propeller is 'A propeller, the pitch setting of which varies automatically to maintain a preselected constant

#title., problem on dissociation constant

problem on dissociation constant

Thrust augmentation - aircraft engine , Thrust augmentation: There are ...

Thrust augmentation: There are occasions when the maximum thrust from a basic gas turbine engine is inadequate and some method of increasing the available thrust is required wi

Chemistry, what is the role of chemistry in engineering

what is the role of chemistry in engineering

Power engine - aircraft maintenance, Power Engine: Power producing engi...

Power Engine: Power producing engines come in two main forms Turboprop and turboshaft. a. Turboprop Engines. Turboprop engines extract most of the energy from the gas stream

8051, Architecture of 8051

Architecture of 8051

Electrochemistry, can two metals such as iron and nickel be separated compl...

can two metals such as iron and nickel be separated completely by electrogravimetry?

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