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

#, • ''Discussed Since the promised return on Russian government debt is mu...

• ''Discussed Since the promised return on Russian government debt is much higher than the promised return on US government debt, you should invest your money in Russia

Asp.net, difference between inline code and code behind file in asp.net

difference between inline code and code behind file in asp.net

Propeller, asymmetric effect (p-factor)

asymmetric effect (p-factor)

Interfacing concept, Basic interfacing concept

Basic interfacing concept

Q meter, what is q meter

what is q meter

Visualizing data matlab, expertsmind.com has Visualizing Data solution in ...

expertsmind.com has Visualizing Data solution in matlab All the design features that are required to picture technological innovation and clinical information are available in

Matlab, program how to estimate the inner curve using spline interpolation

program how to estimate the inner curve using spline interpolation

Fire safety management for clubs, Fire safety management for clubs: In...

Fire safety management for clubs: In clubs and other places where there is music being played, or other entertainment, it is important that the music (or other entertainment)

Fluid mechanics, what is difference between lagrangian aparoach and euleria...

what is difference between lagrangian aparoach and eulerian approach?

Navigation systems , Navigation Systems • Traditional guidance systems...

Navigation Systems • Traditional guidance systems used mechanical gyroscopes (rate gyros) to measure the angular velocities of the vehicle or of the gimbals on which the seeke

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