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

Fire risk assessment in uk - fire protection engineering, Fire risk assessm...

Fire risk assessment in UK: In the UK FRAs are required by law in all commercial premises.  But the FRAs are not the same as described in NFPA 551.  The principles remain the

Co-ordination number, Q.  Define co-ordination number. Ans.CO-ORDINAT...

Q.  Define co-ordination number. Ans.CO-ORDINATION NUMBER: The number of atoms which are directly surrounding a given atom is known as coordination number. Number of atoms w

Mode iii interlaminar fracture toughness , Mode III Interlaminar Fracture T...

Mode III Interlaminar Fracture Toughness  The Mode III interlaminar fracture toughness of a composite can be measured using the split cantilever beam (SCB) geometry. Here, a c

Unidirectional fabric, Unidirectional Fabric A unidirectional (UD) ply ...

Unidirectional Fabric A unidirectional (UD) ply is one in which all of the fibres run in one direction only. A small amount of fibre or other material may run in other directio

Linear state space equations, Linear state space equations Linear state...

Linear state space equations Linear state space equations consist of a (difierential) state equation? x = Ax + Bu and an (algebraic) output equation y = Cx + Du whe

Excel, How do I finish a tough Engineering assignment in excel?

How do I finish a tough Engineering assignment in excel?

Sprinkler system - fire protection engineering, Sprinkler system - fire pro...

Sprinkler system - fire protection engineering Sprinkler systems may be installed in a building to achieve a number of different objectives.  Very often the primary reason for

Procedures for starting and ground running of aircraft , Procedures for sta...

Procedures for starting and ground running: Before starting and ground running any gas turbine powered aircraft, several considerations must be taken into account. The first an

Homework, Please explain how risk is taken into account for a financial ins...

Please explain how risk is taken into account for a financial instrument

Identify people at risk - fire risk assessment, Identify people at risk: ...

Identify people at risk: It is often easy to forget that there may be people in a building who cannot move as quickly as the rest of us.  They may be in a wheel chair, they ma

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