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

Principle of means of escape - fire safety management, Principle of Means o...

Principle of Means of Escape: The means of escape with which a building is provided are simply the ways out of the building that can be safely used in the event of a fire.  It

#, • ''Discussed Since the promised return on Russian government debt is mu...

• ''Discussed Since the promised return on Russian government debt is much higher than the promised return on US government debt, you should invest your money in Russia

Agricultural engineering , Agricultural engineering does not easily mean on...

Agricultural engineering does not easily mean only fruits and vegetables formed from the fields. Agriculture has come up with a dissimilar  look now. When you open a paouch of chip

Who is a more senior creditor, Who is a more senior creditor, a bondholder ...

Who is a more senior creditor, a bondholder or stockholder?  The bondholder is always more mature. Stockholders (including those who own recommended stock) must delay until bond

Assignment #5, the date december 13, 2005. Air traffic controllers in a con...

the date december 13, 2005. Air traffic controllers in a control tower in

K-map, simplify using k-map f=sum(0,4,5,6,9,10,12)+d(1,15)

simplify using k-map f=sum(0,4,5,6,9,10,12)+d(1,15)

Pn junction diode, what is the effect of temperature on pn junction diode o...

what is the effect of temperature on pn junction diode of component

Duty cycle, how to modulate duty cycles

how to modulate duty cycles

Design project, im on my final year, My final project is to design a 2 stor...

im on my final year, My final project is to design a 2 story office building, i was wondering if i can get any help from this website

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