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

Corporate debt market, identify the types of borrowers who have access to f...

identify the types of borrowers who have access to funds through the issue of debentures

Econometrics coursework, Hello this is Lee, I have an Econometrics coursewo...

Hello this is Lee, I have an Econometrics coursework to be helped by some experts from your company. Please send me your reply asap Lee

Single input unbalanced output differential amplifier, dc and ac analysis

dc and ac analysis

Numericalle.., The Stefan-Boltzmann law can be employed to estimate the rat...

The Stefan-Boltzmann law can be employed to estimate the rate of radiation of energy H from a surface of copper sphere with radius = 0.15 ±0.01 m, as in H=AesT^4 where H is in watt

MBA Financial management, Need urgent help with Financial Management homewo...

Need urgent help with Financial Management homework assignment - evaluating company "Billabong". Due Fri 8 June (Sydney, australia time).

Homework, Please explain how risk is taken into account for a financial ins...

Please explain how risk is taken into account for a financial instrument

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

Finance ass, Let C(K) denote a European vanilla Call option with strike pri...

Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

Thermodynamics, show that heat and work are path functons

show that heat and work are path functons

Procedures for starting and ground running of aircraft , Procedures for sta...

Procedures for starting and ground running: Before starting and ground running any gas turbine powered aircraft, several considerations must be taken into account. The first an

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