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

Systems Engineering, critically analyses the system design process of a pro...

critically analyses the system design process of a project for a light railway link for a city

Finance.., hi, I need to do this question but I couldn''t capable to do i...

hi, I need to do this question but I couldn''t capable to do it. so can you tell me how much money I can give you to be done? How would you value the price of a Microfinance I

Thrust augmentation - aircraft engine , Thrust augmentation: There are ...

Thrust augmentation: There are occasions when the maximum thrust from a basic gas turbine engine is inadequate and some method of increasing the available thrust is required wi

Basic characteristics of fire safety management, Basic characteristics of f...

Basic characteristics of fire safety management: basic characteristics - sensibility, reactivity, mobility, and susceptibility - comprise a minimum, exhaustive set of mutually

Important techniques for compacting of metal powders, Q.6 Define powder-met...

Q.6 Define powder-metallurgy. What are various important techniques for compacting of metal powders ? Ans. Powder metallurgy is a technique of producing metal powders and mak

Tensile strength of core materials , The tensile strength of the core mate...

The tensile strength of the core material in a sandwich structure can be determined using the flat-wise tension fixture shown below. The sandwich is bonded between two al

Difference amplifier, Difference amplifier: Figure shows how two inputs...

Difference amplifier: Figure shows how two inputs can be subtracted. This circuit differs from previous types with negative feedback in that the non-inverting terminal is not

Digital Desing Trough VHDL, force and release constructs represents wich as...

force and release constructs represents wich assignments

Flow at low mach number and zero incidence about m6 wing, Flow at low Mach ...

Flow at low Mach number and zero incidence about M6 wing Results from FP were obtained corresponding to M ∞ = 0.2 and a = 0 and, as noted, with the input files generated by FP

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