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

KK-3 system coding, how to write code for any particle shape using KK-3 sys...

how to write code for any particle shape using KK-3 system coding in grope technology

Static machines, briefly differenciate the moore & mealy machines

briefly differenciate the moore & mealy machines

Corrosion cracking, offer an explanation for why cracking might have occurr...

offer an explanation for why cracking might have occurred. Give at least three suggestion on how to prevent this type of corrosion. You may supple with appropriate figures

Aerodynamics-source of drage, Source of drage Total Drag on an aerofoil...

Source of drage Total Drag on an aerofoil is called profile drag - Skin friction • due to tangential force arising from friction - Pressure • Form - due to the inte

Airflow control system principles-aircraft engine, Airflow control system p...

Airflow control system principles: For any given engine there is only one set of conditions, mass flow, pressure ratio and rpm, at which all the compressor components are opera

Matlab assignment, can you formulate a program using only bubblesort for as...

can you formulate a program using only bubblesort for assigning grades in an array?

Shrinkage cavities casting defects, Q.   Discuss briefly the causes and rem...

Q.   Discuss briefly the causes and remedies of Shrinkage cavities casting defects.                                                 OR  Why shrinkage cavities are caus

Binary cycle, Consider the binary cycle using the sodium and steam/water in...

Consider the binary cycle using the sodium and steam/water in the sketch below and operating at conditions in Table 1. Draw T S Diagram and find the thermal cycle efficiency

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