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

Financial management, which type of finanacing is appropriate to each firm

which type of finanacing is appropriate to each firm

#title., problem on dissociation constant

problem on dissociation constant

Aieee, aieee ka course karne ke liye kya karna padega

aieee ka course karne ke liye kya karna padega

Engineering Economy, I need the answers of these three problems. 1. How muc...

I need the answers of these three problems. 1. How much money would be in a savings count that started with a deposit of $2,000 in year 1 with each succeeding amount increasing by

Engine protection devices - aircraft engine, Engine protection devices : ...

Engine protection devices : Described below are typical protection devices that will override any excessive demands made on the engine by the pilot or by the control units.

#title: Signal Processing, how to load a large file consisting hex bytes wi...

how to load a large file consisting hex bytes without spaces and plot the required bytes

MIMO, I need some help

I need some help

The axial flow compressor - aircraft engine, The axial flow compressor: ...

The axial flow compressor: The axial flow compressor is by far the most popular type of compressor and, although it is more difficult to manufacture, it is a more efficient com

Turbo shaft engines - aircraft engine , Turbo shaft engines : Gas turbi...

Turbo shaft engines : Gas turbine engines that deliver power through a shaft to operate something other than a propeller are referred to as turboshaft engines. In most cases th

Design, 10 vertical examples

10 vertical examples

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