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

Fourier’s law of heat conduction, Fourier’s law of heat conduction For one ...

Fourier’s law of heat conduction For one dimension; q(x) = - k dT/dx (2.1) wher

Computational aerodynamics-computer laboratory, A key part of the course is...

A key part of the course is the computer laboratories which will use a package for simulating flow around aerofoils developed by Patrick Hanley . A course licence has been purchase

Pitch lock mechanism, PITCH LOCK MECHANISM The pitch lock mechanism is ...

PITCH LOCK MECHANISM The pitch lock mechanism is necessary to cater for the two fine pitch position of 'flight fine pitch' and 'ground fine pitch'. It acts as a safety device

Mechanical engineering, What is the specific heat of water at different pre...

What is the specific heat of water at different pressure and different temperature? Is it possible to boil the water below atmospheric pressure and use as a hot bathing water?

When should stock rather than debt to fund its operations?, When should sto...

When should stock rather than debt to fund its operations? There are several reasons for an organization to problem inventory rather than financial obligations. The first is if

Rapid Prototyping, Give justification towards the development of Rapid Prot...

Give justification towards the development of Rapid Prototyping?

Mass Balances, Engineers sometimes add chlorine to pipes to disinfect water...

Engineers sometimes add chlorine to pipes to disinfect water. It is desired to achieve four logs of kill. This means that the effluent concentration of microoganisms is 10^-4 times

Qualitative risk assessment - fire protection engineering, Qualitative risk...

Qualitative risk assessment - fire protection engineering: NFPA 551 discusses the differences between qualitative risk assessment and quantitative risk assessment. Qualitat

flow solver, Flow Solver The flow solver of FP utilises data produced ...

Flow Solver The flow solver of FP utilises data produced by the grid generator, together with data read from an input file named FLOW.DAT, and proceeds to calculate the solutio

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