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

Paint, What are the ingredients of paint. Explain?

What are the ingredients of paint. Explain?

Methods of forging, Q. Describe briefly the following methods of forging : ...

Q. Describe briefly the following methods of forging :        (i) Drop forging        (ii) press forging Ans.  (i) Drop Forging: It is also called die

Installation of propeller, INSTALLATION OF PROPELLER The method of inst...

INSTALLATION OF PROPELLER The method of installation will depend on the type of propeller, and all instructions detailed in the appropriate AMM should be carefully followed; th

Unconventional gas, hey i need help in unconventional gas assignment, pleas...

hey i need help in unconventional gas assignment, please let me know if u can do this so

Damping coefficint of canatrd of aircraft, what will be the methodology to ...

what will be the methodology to calculate pitching moment damping coefficient of canrad of aircraft

Define demat account?, Define Demat Account? What is the use of it? Dema...

Define Demat Account? What is the use of it? Demat indicates Dematerialization of reveal, in easy it is an consideration with which a individual can business in protection indus

Banking and finance, identify the role of the regulators and problems assoc...

identify the role of the regulators and problems associated with regulation

Engine fires, Engine fires: There are two main types of engine fire tha...

Engine fires: There are two main types of engine fire that can occur when running gas turbine engines and they are dealt with in different ways. 1. Fire in the engine nacel

Diffusion, distingush between short range and long range diffusion

distingush between short range and long range diffusion

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