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

Crystal symmetry, Q. Define the crystal symmetry with reference to crys...

Q. Define the crystal symmetry with reference to crystal structure. Ans.CRYSTAL SYMMETRY: A crystal is an orderly array of atoms in space. Atoms organize themselves in an

Impulse-Train Sampling, Impulse-Train Sampling

Impulse-Train Sampling

Spinning reticle seekers , Spinning Reticle Seekers A spinning reti...

Spinning Reticle Seekers A spinning reticle seeker contains a single thermal detector and a spinning patterned disk - such as the ‘Rising Sun' Reticle. - consis

Thrust calculation- aeronautical engineering , Thrust calculation: The ...

Thrust calculation: The amount of thrust produced depends upon two things:- The MASS of air which is moved rearwards in a given time, the ACCELERATION imparted to the air.It

Sand casting, Sand castings are porous enough and, therefore, cannot be use...

Sand castings are porous enough and, therefore, cannot be used for pressure sight vessels. Structure obtained by sand casting is loose and hence not stranger than wrought products.

Techniques of capital budgeting, Techniques of capital budgeting There are ...

Techniques of capital budgeting There are a number of capital budgeting techniques used in the evaluation of a project. They are broadly classified under two categories: 1] Discoun

Illustrate flat plate collectors. Describe liquid fl, Illustrate flat plate...

Illustrate flat plate collectors. Describe liquid flat plate collector with relevant diagram.

Public health eng, Design a sewer collection system incorporating flow rate...

Design a sewer collection system incorporating flow rates, pipe sizes and pipe slopes for the proposed residential development shown in the attached drawing. In your design, locat

Amplitude shift keying, explain the operation of bask

explain the operation of bask

Homework, name the functions of the CIPM

name the functions of the CIPM

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