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

Working of bootstrap sweep circuit, Working of bootstrap sweep circuit?

Working of bootstrap sweep circuit?

What is the difference between real money & nominal money?, What is the dif...

What is the difference between real money & nominal money? 1) Nominal cash is related to the measure of counting. Moderate figure is what is written on the bill. Whereas actual

Casting, Casting means the pouring of molten metal into a mould, where soli...

Casting means the pouring of molten metal into a mould, where solidification occurs. Advantages of Casting Process (i) It is the cheapest method of fabrication.

Various stages of creep, Q. Explain various stages of creep? Ans. CREE...

Q. Explain various stages of creep? Ans. CREEP: Creep can be defined as the process by which plastic flow occurs when a constant stress or load is applied to a material for a

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

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

Strain hardening, Q. Define the concept of strain hardening. Ans. S...

Q. Define the concept of strain hardening. Ans. Strain hardening or work hardening in metal occurs because of interaction between the this location and some of obstruction.

Core competencies that produce value, 1. What are the core competencies tha...

1. What are the core competencies that produce value? Answer: The core competencies of an organization which produce value are: i. Marketing: Every organization produces a product

Power systems, WHY VOLTAGE GENERATED IN MULTIPLES OF 11

WHY VOLTAGE GENERATED IN MULTIPLES OF 11

Career help, hey, i am doing b.e in chemical engineering but by aggregate i...

hey, i am doing b.e in chemical engineering but by aggregate is 55%. i would like to know what courses and preparation i have to do to get a good job. pls reply as soon as possible

Thermodynamics, show that heat and work are path functons

show that heat and work are path functons

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