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

Industrial buildings inspections-fire protection engineering, Industrial Bu...

Industrial Buildings Inspections: Fire safety within industrial buildings falls largely within the scope of more general precautions and recommendations given in Chapter of NF

Internal rate of return: multiple alternatives, Internal Rate of Return: Mu...

Internal Rate of Return: Multiple Alternatives To compare multiple alternatives using the IRR as measure of economic worth we must use the incremental approach. It is erroneou

Calculate pi for infinite series, Write a program to calculate from the i...

Write a program to calculate from the infinite series: Print a table showing the value of approximated by one term, two terms, three terms, four terms, and so on from th

Drafting, what employment options are available in drafting

what employment options are available in drafting

Cascaded, circit diagram and operation

circit diagram and operation

Networking engineering, I need 2 assignments on Monday.

I need 2 assignments on Monday.

Chaplets, Q. Explain the Chaplets. ...

Q. Explain the Chaplets. OR When are chaplets required in moulding practice? What is the material of the chaplets?

Air flow control system – operation, Air flow control system – operation: ...

Air flow control system – operation: The stages of the compressor are matched to give the highest efficiency in the speed range maximum rev/min. To extend the range of smooth

Analog and digital communication, mobile communication about transmitting r...

mobile communication about transmitting receiving

Mechanical design 2, Mechanical Design (48650) – Spring Semester 2012 Optim...

Mechanical Design (48650) – Spring Semester 2012 Optimisation Assignment – BUILDING A ROAD Teams of THREE to FIVE [3 to 5] – Worth 20% of the Semester Grade Due: Thursday 23rd Marc

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