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

300 X zoom lens, How to calculate the field of views

How to calculate the field of views

Static and dynamic balancing - propellers, STATIC & DYNAMIC BALANCING ...

STATIC & DYNAMIC BALANCING STATIC BALANCE When the weight distribution about the propeller axis is equal, with the propeller in any position, it is said to have static bal

Turbine engines cooling , Turbine engines cooling : Turbine engines are...

Turbine engines cooling : Turbine engines are designed to convert heat energy into mechanical energy. The combustion process is continuous and, therefore, heat is produced. On

Single input unbalanced output differential amplifier, dc and ac analysis

dc and ac analysis

Aerospace Engineering, Define the aircraft axes & degrees of freedom. Analy...

Define the aircraft axes & degrees of freedom. Analyse the different maneuvers that can be done by an aircraft.

Heat transfer, A heat recovery device involves transferring energy from hot...

A heat recovery device involves transferring energy from hot flue gases passing counter currently through an annular region to pressurized water flowing through the inner tube of t

Mr tiy, Hi, do u help with HYSYS assignment ?

Hi, do u help with HYSYS assignment ?

Fluid (liquid) ice protection systems, FLUID (LIQUID) ICE PROTECTION SYSTEM...

FLUID (LIQUID) ICE PROTECTION SYSTEMS: Liquid ice protection systems can be used as either anti-ice or de-ice systems. The system is designed to project a film or fluid over t

Time motion study, how to create a chart of time motion study

how to create a chart of time motion study

EMI, explain ramp type

explain ramp type

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