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

thermoelectric effect, Thermoelectric effect The measurement of temper...

Thermoelectric effect The measurement of temperature using a thermocouple relies on Seebeck effect. The electrons occupy different energy levels in different materials

Plant, What isplant

What isplant

Further evaluation in the use of ultrasonic and ECT sensor, proposal of the...

proposal of the dissertation topic

Propeller terminology, PROPELLER TORQUE Propeller torque is produced by...

PROPELLER TORQUE Propeller torque is produced by the aerodynamic drag on the blades when in motion. Propeller torque acts in the plane of rotation and opposes engine torque.

Query about Finite Element Analysis assignment service , Hi, I require a s...

Hi, I require a service which involves finite element modelling on commercial software package "ABAQUS". I am personally not sure how to model this on ABAQUS and thats why I have

Air cannon launcher ansys analysis, Hello, I''m doing a project that needs ...

Hello, I''m doing a project that needs an ANSYS software for analysis calculation, is it possible to do me that if I provide you all the the information needed. Thank you

Finance, et C(K) denote a European vanilla Call option with strike price K....

et C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-a

Noise suppression in aircraft design, Noise Suppression in Aircraft Design:...

Noise Suppression in Aircraft Design: It has been seen that the first step towards noise suppression is at the design stage of the rotating and static parts of the engine. The

Construction and working of electron microscope, Electron Microscope Th...

Electron Microscope The development of the electron microscope was based on theoretical work done by Louis De Broglie, who found that wavelength is inversely proportional to mo

My personal project - seventh grader, What makes buildings earthquaqe resis...

What makes buildings earthquaqe resistant?

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