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

Time-flow diagram, One approach of an intersection with fixed time traffic ...

One approach of an intersection with fixed time traffic signals, vehicles arrive at 500 veh/h on the approach. The cycle time of the intersection is 80 seconds, and the effective g

Bajaj electronics, HOW WOULD YOU JUDGE THE POTENTIAL PROFIT OF BAJAJ ELECTR...

HOW WOULD YOU JUDGE THE POTENTIAL PROFIT OF BAJAJ ELECTRONICS ON THE FIRST YEAR OF SALES TO BOOTH PLASTICS AND GIVE YOUR VIEWS TO INCREASE THE PROFIT?

Dual input unbalanced output differential amplifier ac analy, analysis of d...

analysis of dual input unbalanced output differential amplifier ac analysis?

Nomenclature, Nomenclature • Information source device producing inform...

Nomenclature • Information source device producing information to be communicated • Binary digit (bit) fundamental information unit for all digital systems; unit of informat

Themodynamic, 1 kg of air is allowed to expand reversibly in a cylinder beh...

1 kg of air is allowed to expand reversibly in a cylinder behind a piston in such a way that the temperature remains constant at 260 degree while the volume is doubled.The piston i

Trusses, Analysis of truste,2D truss analysis using method of joint(cantile...

Analysis of truste,2D truss analysis using method of joint(cantilever & simply support)?

Providing alternative escape routes, Providing alternative escape routes: ...

Providing alternative escape routes: The first thing to check is if everyone can turn away from the fire and move safely away from it. For this to be the case there will

Differential amplifier, assignment

assignment

Harriman, HARRIMAN MANUFACTURING COMPANY Harriman Manufacturing Company i...

HARRIMAN MANUFACTURING COMPANY Harriman Manufacturing Company is evaluating the purchase of a new piece of equipment. The quoted price is $50,000, and it would cost Harriman anot

Semi conductor devices, mobility and conductivity

mobility and conductivity

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