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

Flame photometer, please explain a bout blog diagram of flame photometer

please explain a bout blog diagram of flame photometer

Construction, What are the problems arises during construction and their so...

What are the problems arises during construction and their solutions

Mechanical pulverization, Mechanical pulverization method is applicable to...

Mechanical pulverization method is applicable to brittle metals like antimony. Many varieties of mechanical pulverizers are in use; some of these have counter rotating plates or r

Extractive metallurgy, differences between blast , reverbatory and electric...

differences between blast , reverbatory and electric furnaces

Sprag clutch - aircraft engine, Sprag Clutch : Sprag clutches are used ...

Sprag Clutch : Sprag clutches are used to provide the disconnect mechanism between the starter motor and the engine. The clutch will transmit drive from the starter motor, but

Armature cipl, in which type of armature winding Equaliser ring dummy coils...

in which type of armature winding Equaliser ring dummy coils are used

Variables and quantifiers in first-order logic, Variables and Quantifiers i...

Variables and Quantifiers in First-Order Logic - Artificial intelligence: Now suppose that we wanted to say that there is a meal at the Red Lion which costs only three pounds.

Gas turbine fuel properties - aircraft design, Gas turbine fuel properties ...

Gas turbine fuel properties and specification In the earliest days of the gas turbine engine, kerosene was regarded as the most suitable fuel. It commended itself on the grounds

Grain ethanol plant design, Can you help me design a grain ethanol plant as...

Can you help me design a grain ethanol plant as a design project? I need help with mass and energy balances Key equipment design ie distillation column, heat exchanger, storage t

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