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

Flight control - transfer function models, Transfer Function Models Cor...

Transfer Function Models Corresponding to each linear state space equation in the time domain with input u(t) and output y(t) is a matrix of transfer functions relating the Lap

Assignment on risk and return, Assignment on Risk and Return# Stock has bet...

Assignment on Risk and Return# Stock has beta of 1.5 & an expected return 11%. A risk free asset earns 2%. Determine the expected return on a portfolio that is equally invested in

Strain hardening, Q. Define the concept of strain hardening. Ans. S...

Q. Define the concept of strain hardening. Ans. Strain hardening or work hardening in metal occurs because of interaction between the this location and some of obstruction.

Presentation about digital technology and finance, i need help with my outl...

i need help with my outline and presentation slides

New assembly buildings - fire protection engineering, N e w Assembly Buil...

N e w Assembly Buildings: 12.1.1.1 The requirements of this chapter shall apply to new buildings or portions thereof used as an assembly occupancy. 12.1.3.2 Simultaneous

Embedded system, do u do embedded system assignment?

do u do embedded system assignment?

Production homework, my assingment is in petroleum engineering. Its product...

my assingment is in petroleum engineering. Its production class.Can you help me?

Describe the processes of a cdma system, Question: (a) Describe the spr...

Question: (a) Describe the spreading and dispreading processes of a CDMA system. (b) Autocorrelation properties are used to recover the signals correctly at the receiver. Ex

Bragg''s spectrometer , It consists o a source of x ray, with a number of c...

It consists o a source of x ray, with a number of collimated slits. Crystal under investigation is mounted on a table, and the position of this table can be recorded on vernier sca

Synchro resolvers for high load, Synchro resolvers for high load The re...

Synchro resolvers for high load The receiver rotor is driven by an electric motor to a null position, i.e. the receiver coil will be aligned at 90 o to the transmitter coil. A

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