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

Logic gates - and gate, Logic gates - and gate: Figure shows the symbol...

Logic gates - and gate: Figure shows the symbol that represents 2 input AND gate together with its truth table. This gate will only adopt a 1 state at its output terminal when

Gas metal arc welding (gmaw), Gas metal arc welding (GMAW) is performed by ...

Gas metal arc welding (GMAW) is performed by using direct current reverse polarity as it gives both good cleaning action and fast filler metal deposition rates. A rather high weldi

System architecture and design, The home work is to make an model based sys...

The home work is to make an model based system architecture for an electrical car. in Enterprise Architecture with SysMl language.

Industrial engineering, what is QCM?

what is QCM?

Survey of manufacturing, Survey of Manufacturing : A usable product is man...

Survey of Manufacturing : A usable product is manufactured in the following sequence. Ore from Earth → Reducing processes → Molten metal → Commercial Castings → Ingots → Furth

Environmental engineering question, The town of Smog, Idaho is located in a...

The town of Smog, Idaho is located in a river valley and has a footprint of 6 km x 2 km. It has an average daily emission rate of 1000 kg/day of PM2.5 into the atmosphere from wood

#digital electronics, #Design 2:1 MUX with strobe input using NAND gates

#Design 2:1 MUX with strobe input using NAND gates

Operations research 1, oilcois building a refinery to procduce four product...

oilcois building a refinery to procduce four products diesel, gasoline

Capacitors&types of capacitor, Ask question #Minimum 700 words accepted#

Ask question #Minimum 700 words accepted#

Tensile strength of core materials , The tensile strength of the core mate...

The tensile strength of the core material in a sandwich structure can be determined using the flat-wise tension fixture shown below. The sandwich is bonded between two al

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