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

Financial Ratio, The following information was extracted from the accountin...

The following information was extracted from the accounting records of De Walt Company as at 28 February 2011 (the end of their financial year): Sales (50% on credit) 1 400 000 Cos

Architectural Design and Drawing, how can I improve my G+4 apartment with r...

how can I improve my G+4 apartment with rendering with pen and ink

Architectural graphics, How to draw schiography in a perspective view of an...

How to draw schiography in a perspective view of an object

Classification of plastic, Q. Discuss the classifications of plastics.     ...

Q. Discuss the classifications of plastics.                                                      OR      Discuss the general properties and classification of plastics.

Design project, I need report explain every things about my project

I need report explain every things about my project

Blanking, Blanking involves cutting of the sheet metal along a closed outl...

Blanking involves cutting of the sheet metal along a closed outline in a single step to separate the piece from the surrounding stock. As shown in figure, the path that is cut out

Secure communication, Distinguish between passive and active attacks,

Distinguish between passive and active attacks,

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

Give justification towards the development of Rapid Prototyping?

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