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

Commission, how to develop an algorithm that will accept the names of sales...

how to develop an algorithm that will accept the names of sales staff members and the total sales for the month.the algorithm must calculate the commission of 3% of the total sales

Cash flow diagrams, Cash Flow Diagrams We will use a cash flow approac...

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

Numeric computation matlab, Expertsmind.com offers Performing Numeric Comp...

Expertsmind.com offers Performing Numeric Computation matlab assignment help MATLAB contains numbers, precise, and technological innovation features to support all common tech

Process Control, Specify the inner-loop gain such that the damping coeffici...

Specify the inner-loop gain such that the damping coefficient of the closed loop is equal to 0.4

The brayton cycle-aeronautical engineering, The brayton cycle: The work...

The brayton cycle: The working cycle of the gas turbine engine is similar to that of the four-stroke piston engine.  There is induction, compression, ignition and exhaust in bo

Avionic systems design- primed stability derivatives, Primed stability der...

Primed stability derivatives The rolling and yawing motions are coupled through the cross inertia I XZ due to rotation not being about the principal axes. Since in general air

What is the company’s net working capital, Working capital: Laurel Electron...

Working capital: Laurel Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,235,455, accounts payables wo

Rayleigh scattering, how rayleigh scattering occurs in optical fiber cable

how rayleigh scattering occurs in optical fiber cable

Environmental engineering question, The town of Smog, Idaho is located in a...

The town of Smog, Idaho is located in a river valley and has a footprint of 6 km x 2 km. It has an average daily emission rate of 1000 kg/day of PM2.5 into the atmosphere from wood

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