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

Operations research 1, oilcois building a refinery to procduce four product...

oilcois building a refinery to procduce four products diesel, gasoline

Flight control - transfer function models, Transfer Function Models Cor...

Transfer Function Models Corresponding to each linear state space equation in the time domain with input u(t) and output y(t) is a matrix of transfer functions relating the Lap

Summing amplifier, Summing amplifier: As the title implies, this is an ...

Summing amplifier: As the title implies, this is an adding device.  The circuit can take any number of voltage inputs, and the output voltage is simply the sum of these inputs.

Advantages and disadvantages of integrated circuit, ADVANTAGES The smal...

ADVANTAGES The small size of the IC is its most apparent advantage. A typical IC can be constructed on a piece of semiconductor material that is less than 4mm2. Even when the

International financial management , explain the funcyions and structure of...

explain the funcyions and structure of foreign exchange market.

Explain the concept of postmodernism in detail, Question 1 Write a long no...

Question 1 Write a long note on Professional Cultures in a ‘Golden Age' Question 2 Write a long note on the Global and Local Interrelationship Question 3 Write a long no

Modulus of rupture, description about modulus of rupture machine & differen...

description about modulus of rupture machine & different parts of bending strength machine

Strength of materials, Applications of the subject strength of materials

Applications of the subject strength of materials

Polymers, what are the merits and demerits of free radical

what are the merits and demerits of free radical

Homework, name the functions of the CIPM

name the functions of the CIPM

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