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

Klklk, kjhkjhkjh

kjhkjhkjh

Construction material, suitable cement for adequate building

suitable cement for adequate building

Law of gearing, define lawof gearing

define lawof gearing

. CFD, HOW TO MAKE ROTATING FRAME

HOW TO MAKE ROTATING FRAME

Internal rate of return irr, Internal rate of return IRR In case of IRR met...

Internal rate of return IRR In case of IRR method cash flow are analyzed taking into account the magnitude and the timing. IRR is that discount rate which gives a net present value

Need help with a financial management quiz, Would you be able to assit me w...

Would you be able to assit me with a 40 question, multiple chioice quiz today ?

Construction and working of electron microscope, Electron Microscope Th...

Electron Microscope The development of the electron microscope was based on theoretical work done by Louis De Broglie, who found that wavelength is inversely proportional to mo

Software engineering, analyse modelling for safe home security system

analyse modelling for safe home security system

thermoelectric effect, Thermoelectric effect The measurement of temper...

Thermoelectric effect The measurement of temperature using a thermocouple relies on Seebeck effect. The electrons occupy different energy levels in different materials

Dsp, Dit fft idft

Dit fft idft

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