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

Thermal efficiency, For ramjets, turbojets and turbofans

For ramjets, turbojets and turbofans

Electricity generation, Q. The Electricity generation in Florida is 224,750...

Q. The Electricity generation in Florida is 224,750GWh/y. What is the annual generation per capita? Knowing the population of Florida, the electricity generation per capita is 1

Young''s modulus, young''s modulus by uniform bending

young''s modulus by uniform bending

Software engineering, what is SRS

what is SRS

Process control, what is the input to a process control system?

what is the input to a process control system?

Specific air range & specific endurance , Specific Air Range & Specific End...

Specific Air Range & Specific Endurance Key cruise parameters are Range (distance flown) and Endurance (time of flight). It is important to be able to relate these to the amou

Principles of sprinkler systems-fire safety engineering, Principles of Spri...

Principles of Sprinkler Systems-Fire safety Engineering Sprinkler systems may be installed in a building to achieve a number of different objectives. Very often the primary r

Java, write a program for remote procedure call using java

write a program for remote procedure call using java

Skin-core debonding in sandwich structures, If the skins are peeled from th...

If the skins are peeled from the core, a sandwich structure loses its strength and stiffness. This can occur under - wave-slamming in fast ferries - rapid depressurisati

The oil pressure indicator - aircraft engine, The oil pressure indicator : ...

The oil pressure indicator : The oil pressure indicator has a dial normally calibrated in pounds per square inch (psi). The indicator may have max. limit markers, but will alw

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