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

Engine PW4168 or PW4168A, How is the overspeed solenoid cutback valve opera...

How is the overspeed solenoid cutback valve operate when Engine overspeed happen?

Dynamic model of pitching motion , It is instructive to investigate the pit...

It is instructive to investigate the pitching motion caused by a disturbance from trim due to a control surface deflection. We shall assume that the velocity remains constant, and

Linear programming application in software industry, What could be applicat...

What could be application of linear programming in software development?

Composite materials - notation of axes, Notation for Body Axes The stan...

Notation for Body Axes The standard notation for the body axis sytem for aircraft dynamics. This sectionexplains the significance of the term body axis and develops the non-lin

Equivalent shaft horsepower - aircraft maintenance , Equivalent Shaft Horse...

Equivalent Shaft Horsepower (EHP) In practice there is always a certain amount of jet thrust in the total output of the turbo-propeller engine and this must be added to the s.h

Hydraulics.., A pump delivers 40 lpm to a 100 mm bore/25 mm rod cylinder to...

A pump delivers 40 lpm to a 100 mm bore/25 mm rod cylinder to move a load of 22 kN. A throttle is introduced on the rod end, and return flow with a 10 lpm flow rate. A 70 bar press

Compton''s effect, When a beam of monochromatic x ray is incident on a grap...

When a beam of monochromatic x ray is incident on a graphite block, it get scattered and scattered wavelength is larger than that of the incident radiation wavelength. This scatter

Numerical methods, Numerical solutions to equations: Many practical p...

Numerical solutions to equations: Many practical problems in engineering involve complex boundary conditions and variable properties that cannot be solved analytically, creat

Calculate the heat transfer coefficient , Water is flowing at 0.5 ms-1 acro...

Water is flowing at 0.5 ms-1 across a 7.5 cm diameter sausage at 80°C. If the bulk water temperature is 15°C, estimate the heat-transfer coefficient. a) What type of heat tranfe

Permeability of moulding sand, Permeability of Moulding Sand  is the proper...

Permeability of Moulding Sand  is the property of the sand, which permits the gases and steam to escape through the sand mould. For this purpose, the sand must be porous. Permeabil

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