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

Logic gate -xor gate, 'Exclusive or' gate: The basic OR gate illustrate...

'Exclusive or' gate: The basic OR gate illustrated previously in Figure 3 was seen to include the AND operation in that its output will adopt the 1 state not only when either i

Diffuser action-aircraft maintance, Diffuser action: The flare, which i...

Diffuser action: The flare, which increases the area of the duct, is known as a diffuser and its shape determines the rate of compression and the amount by which the air is com

Aircraft radio installation licence and approval, AIRCRAFT RADIO INSTALLATI...

AIRCRAFT RADIO INSTALLATION (STATION) LICENCE AND APPROVAL 1. A radio installation licence is issued by the Department of Trade and Industry Radio Communications Agency , fo

Regarding my project, i want to do project in the area wing in aircraft...p...

i want to do project in the area wing in aircraft...please give some sugestions or ideas in that

Genetic algorithm procedure, Genetic Algorithm Procedure Generate a ...

Genetic Algorithm Procedure Generate a "pool" of "genes" randomly These genes are then "mated" to produce the "mated" to produce the next generation Best genes have a

Inheritance and polymorphism, The objective of this programming assignment ...

The objective of this programming assignment is to experience the use of inheritance in Java and to see how polymorphism works with inheritance in Java. The assignment involves wri

Econometrics of Financial Derivatives, I''d like to receive a recommended b...

I''d like to receive a recommended book to be able to price fixed income derivatives when there is not already a martet to to calibrate models. I need to use econometrics book to e

Production Inventory Control, Modular Forniture Company manufactures two ki...

Modular Forniture Company manufactures two kinds of couches: Suede and Leather. The forecasted demand for

Feathering the propeller, Feathering the propeller: If there is an engi...

Feathering the propeller: If there is an engine failure in flight, the propeller would windmill creating drag and increasing any damage that had occurred in the engine. Feathe

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