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

Jupiter and saturn, Expertsmind.com  brings you unique solution in Electri...

Expertsmind.com  brings you unique solution in Electrical Engineering -           Jupiter and Saturn are made almost entirely of hydrogen and helium with

FI560, Each student will, as part of the course requirements, submit a rese...

Each student will, as part of the course requirements, submit a research paper on an individual stock. You are allowed to select any stock that trades on the New York Stock Exchang

What is crossover rate?, What is crossover rate? They are produced by tw...

What is crossover rate? They are produced by two different but identical tasks. The cross-over amount is the points at which the two tasks obtain the same net provide value. Wit

Servo accelerometer, Servo accelerometer Electro-mechanical servo (forc...

Servo accelerometer Electro-mechanical servo (force balance) accelerometer uses an electromagnet to provide restoring force. The position of the seismic mass is measured by a p

Interlaminar shear strength , Composites have low shear strengths compared ...

Composites have low shear strengths compared to longitudinal strengths. The ILSS test is a simple 3 point bend test, requiring a small amount of material. A span to depth ratio

Second order decoupling approximation, The second order (two degree of free...

The second order (two degree of freedom) Dutch-Roll approximation is an approximation to the above fourth order system for the Dutch Roll dynamics. A justification for this is to c

Differentiate crystalline and amorphous materials, Q.   Differentiate cryst...

Q.   Differentiate crystalline and amorphous materials? (a)Crystalline solids:  Those solids in which the, ions atoms or molecules in a definite regular repeated

Vibration analysis of aircraft, Vibration Analysis Gas turbine engines ...

Vibration Analysis Gas turbine engines have extremely low levels of vibration compared to piston engines. Changes in vibration levels could occur therefore without being notic

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