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

Welding, what is causes of submage arc welding

what is causes of submage arc welding

Analyze an organization''s competition, Briefly explain how to analyze an o...

Briefly explain how to analyze an organization''s competition Answer: In order to analyze an organization’s competition, the following aspects need to be checked and recorded in o

What is accounting management?, What is accounting management? Managemen...

What is accounting management? Management accounting is worried with offering details to supervisors - that is, individuals within a company who immediate and control its functi

Furniture of space, can you ask me what is in space

can you ask me what is in space

Mine Drainage Task, The purpose of this project is to design a pipeline and...

The purpose of this project is to design a pipeline and pumping system to dewater a mine. The production level is 500m below surface. Ore is fed through crusher chambers to the tra

Numerical method, find the newton raphson iterative formula for a reciproca...

find the newton raphson iterative formula for a reciprocal of a number N and hence find the value of 1/23.correct to 5 place of decimal

Aviation legislation - aircraft weighing, AIRCRAFT WEIGHING NOTE: T...

AIRCRAFT WEIGHING NOTE: The C.A.A. will consider applications from aircraft constructors and operators to weigh certain types of aircraft on a sampling basis. (i.e. repre

Biomedical engineering assignment, I''ll attach assignment

I''ll attach assignment

Crystal symmetry, Q. Define the crystal symmetry with reference to crys...

Q. Define the crystal symmetry with reference to crystal structure. Ans.CRYSTAL SYMMETRY: A crystal is an orderly array of atoms in space. Atoms organize themselves in an

Mr tiy, Hi, do u help with HYSYS assignment ?

Hi, do u help with HYSYS assignment ?

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