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

#pareto, how to crate pareto charts eith matlab?

how to crate pareto charts eith matlab?

Details of construction , type of stairs

type of stairs

Dsp, relationship between z plane and s plane in bilinear transformation me...

relationship between z plane and s plane in bilinear transformation method

Compacting or briquetting, The operation of heating a green compact to an e...

The operation of heating a green compact to an elevated temperature is known as sintering. It is a process by which solid bodies are bonded by atomic forces. It is carried out belo

Geomatics, chainig

chainig

Crystallographic notation, Q. W hat do you understand by crystallographic n...

Q. W hat do you understand by crystallographic notation of atomic planes/Explain with the help of examples. Ans.Crystallographic Notation 1. Crystal Symmetry:

Explain in brief about priority rules for scheduling?, Question 1 A large ...

Question 1 A large number of forecasting methods are available. Discuss the categories of forecasting methods Question 2 Explain how economic order quantity can be calculated

Systems Engineering, critically analyses the system design process of a pro...

critically analyses the system design process of a project for a light railway link for a city

Evacuation in a hospital - fire protection engineering, Evacuation in a hos...

Evacuation in a hospital - fire protection engineering: An evacuation in a hospital is very unlikely to require anyone to go outside. The buildings are split into numerous fir

Aircraft engine, what is the basic operation of gas turbine engine?

what is the basic operation of gas turbine engine?

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