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

Describe the processes of a cdma system, Question: (a) Describe the spr...

Question: (a) Describe the spreading and dispreading processes of a CDMA system. (b) Autocorrelation properties are used to recover the signals correctly at the receiver. Ex

7.3 satellite antenna, design a connectivity diagram for a 7.3 m satellite ...

design a connectivity diagram for a 7.3 m satellite antenna

Railway inspections - fire safety management, Railway Inspections - fire sa...

Railway Inspections - fire safety management: Railway premises can be anything from small open air stations to large underground complexes and the fire safety measures that ar

Thermodynamics, calculate the workdone by a system which contains 10kg of t...

calculate the workdone by a system which contains 10kg of this gas expanding from 1m^3 at temperature of 293k, use the values a=15.7*10Nm^4, b=1.07*10^-2m^3 , R=0.278KJ/Kg-k.

How would undertake a waste audit, Question: a) Assume that you are the...

Question: a) Assume that you are the director of the Solid Waste Unit of the Ministry of Local Government. Explain how you would undertake a waste audit at the level of a munic

Casting alloys, Casting Alloys are -             (i) Permanent moulds...

Casting Alloys are -             (i) Permanent moulds are commonly used for the casting of grey iron, aluminum alloys and magnesium alloys.             (ii) Slush Casting

Msor, write a note on tracing a closed loop.what are the characteristic,fea...

write a note on tracing a closed loop.what are the characteristic,features of a closed loop.

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

Propeller control in aircraft engine, Propeller control : CONSTANT SPE...

Propeller control : CONSTANT SPEED UNIT: In the normal flight range, the main control of the propeller is exercised by the propeller control unit (PCU). MANUAL AND AU

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