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

Lead time, Enumerate possible impact of having inadequate system design in ...

Enumerate possible impact of having inadequate system design in the lead time and engineering cost?

Marginal costing, VK Ltd a multi-product Company, furnishes you the followi...

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4

Case study, M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meeru...

M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meerut, the maximum capacity of which is 200 units per month. Details of raw materials which go into the making of 1 units

Aerodynamics-supercritical aerofoils, Design Features of Supercritical Aero...

Design Features of Supercritical Aerofoil • Blunt nose- rapid p pressure reduction around leading edge • Flat top- Reduce the flow acceleration on upper surface toreduc

Degeneracy , If a single energy eigen value corresponds to more than one ei...

If a single energy eigen value corresponds to more than one eigen function then degeneracy is said to be exist and the number of wave function associated with a single value of ene

Negative equity, An accountant says that your firm has negative equity so ...

An accountant says that your firm has negative equity so the firm is bankrupt. discuss ?

Amplitude shift keying, explain the operation of bask

explain the operation of bask

VLSI, what is meant by VMOS

what is meant by VMOS

Plaster molds, Plastic molds are made of plaster of Paris (gypsum) or calci...

Plastic molds are made of plaster of Paris (gypsum) or calcium sulphate, talc and silica flour is added in the plaster of Paris to improve strength and to control the time required

ROBOT, CYLINDRICAL COORDINATE

CYLINDRICAL COORDINATE

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