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

Combustion chamber injection system - aircraft engine , Combustion chamber ...

Combustion chamber injection system: Injecting a water or water/methanol mixture into the combustion chambers increases the mass flow through the turbine and the high volumetri

Process control, I have an assignment which I need help with

I have an assignment which I need help with

What is the difference between journal entry & ledger?, What is the differe...

What is the difference between JOURNAL ENTRY & LEDGER? Journal is a journal of unique entrance. It is a journal where all the dealings of organization have been registered rela

Embedded system, I have an assignment of engine control unit (hardware desi...

I have an assignment of engine control unit (hardware design and programming) if you have an expert.....

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

Modified accelerated cost recovery system , Modified Accelerated Cost Recov...

Modified Accelerated Cost Recovery System (MACRS) Although SLN is the most commonly used depreciation method in the U.S. for purpose of financial reporting, MACRS is the only

CHEMICAL, TRANSPORT 2 CHEMICAL PROCESS CONTROL CHEMICAL REACTIONS ENGINEERI...

TRANSPORT 2 CHEMICAL PROCESS CONTROL CHEMICAL REACTIONS ENGINEERING

Electro slag welding process, Q. Describe the electro slag welding process....

Q. Describe the electro slag welding process. OR Describe electro slag welding process. What are the speci

Process control, what is the input to a process control system?

what is the input to a process control system?

Clamping circuit, draw and explain the working of a positive clamping circu...

draw and explain the working of a positive clamping circuit?

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