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

ALGORITHM, write an algorithm to find a number that multiplies your name 10...

write an algorithm to find a number that multiplies your name 10 times

Securities analysis coursework, Company: British Sky Broadcasting Topic: Yo...

Company: British Sky Broadcasting Topic: You are a security analyst in a large investment house and must write a report on a real stock of your choice, giving a buy, hold or sell r

Scr, briefly explain the switching characteristics of SCR

briefly explain the switching characteristics of SCR

Asymmetric effect - propeller, Asymmetric Effect In general the axis o...

Asymmetric Effect In general the axis of the propeller will be inclined upwards to the direction of flight due to the angle of attack of the aircraft. This causes the dow

Sas software, I need assistance in SAS software based stats questions, can ...

I need assistance in SAS software based stats questions, can you provide me solution?

Plastic processing methods , Q. Write short note on following : ...

Q. Write short note on following : (i) Compression moulding of plastics. (ii) Injection moulding of plastics.

International financial management , explain the funcyions and structure of...

explain the funcyions and structure of foreign exchange market.

Dsp, find IDFT of the sequence X(k)={5,0,1,-j,0,1,0,1,j,0}

find IDFT of the sequence X(k)={5,0,1,-j,0,1,0,1,j,0}

Flight control -state estimators , State-estimators for continuous time lin...

State-estimators for continuous time linear systems The state space state and output equations of continuous time linear systems is of the form? x = Ax + Bu + v and y

Construction techonology, ASSIGNMENT

ASSIGNMENT

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