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

Model independent option valuation , Derive the functional relationship bet...

Derive the functional relationship between the no-arbitrage values of the two vertical spreads, C (K1)-C (K2) and C (K2)-C (K3).

Router, how does the Ip message finally reassemble?

how does the Ip message finally reassemble?

Water treatment plant , i need to design a water treatment plant with raw w...

i need to design a water treatment plant with raw water entering ph of 10 and needs to have a ph of 7 when leaving the treatment process the rate of flow 260lt/sec

Flight dynamics - velocity component, Force, Moment, Velocity and Angular V...

Force, Moment, Velocity and Angular Velocity Components • Aerodynamic Force Components - X, Y, Z • Velocity Components - U, V, W (or Vx, Vy, Vx) • Angular Velocity Components - P,

Flight control - estimators for control, Estimators for control: App...

Estimators for control: Applying control by the state itself needs transducers measuring each componentof x. If instead we apply control using the estimate of state (as prov

Finance, Derive the functional relationship between the no-arbitrage values...

Derive the functional relationship between the no-arbitrage values of the two vertical spreads.

The research about thermoset polymer products, Chemical Engineering The re...

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Fuel control system in aircraft engine, Fuel control system in Aircraft Eng...

Fuel control system in Aircraft Engine: The computer controls the fuel flow to the engine to maintain a constant rotor RPM. During normal operation the optimum engine/rotor spe

Principles of jet propulsion, Principles of Jet Propulsion: Newton 's...

Principles of Jet Propulsion: Newton 's Laws of Motion. To understand the basic principles of jet propulsion it is necessary to understand the practical application of Sir I

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