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

The decoupled dynamics, The longitudinal and lateral states of the decouple...

The longitudinal and lateral states of the decoupled linear dynamics are distinct sets of variables. They are conveniently remembered by the flight-control engineer by visualising

Use of multicylinder engine, USE OF MULTICYLINDER ENGINE If, in a multi...

USE OF MULTICYLINDER ENGINE If, in a multi cylinder engine, power strokes are staggered, the limitation of flywheel can be overcome to a large extent. Torque diagram for 2 cyli

Degeneracy , If a single energy eigen value corresponds to more than one ei...

If a single energy eigen value corresponds to more than one eigen function then degeneracy is said to be exist and the number of wave function associated with a single value of ene

Depreciation methods in economical engineering, Depreciation Methods T...

Depreciation Methods Technically speaking, U.S. tax law permits deduction from taxable income of a reasonable allowance for wear or tear, natural decay or decline, exhaustion,

Crude oil assy, what is the importance of cetane number in crude oil assy?

what is the importance of cetane number in crude oil assy?

Measurement uncertainty, Real measurements never deliver the true value of ...

Real measurements never deliver the true value of the physical quantity or measurand. The measurement uncertainty consists of a random error and a systematic error. Most of the err

Architectural graphics, How to draw schiography in a perspective view of an...

How to draw schiography in a perspective view of an object

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd