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

Water, Dear Sir, Please answer the follwing question . Specs: Filterati...

Dear Sir, Please answer the follwing question . Specs: Filteration Capacity 18000 LPH , Tested pressure 6Kg/Sq.cm, Vertical MS pressure Sand filter(flat ends 6mm thick & di

Creep, strain rate on creep

strain rate on creep

Engine drains, ENGINE DRAINS. There are two types of drains: • Con...

ENGINE DRAINS. There are two types of drains: • Controlled drains - the result of normal operation. • Uncontrolled drains - the result of abnormal operation. CONTROLLE

Case analysis, Construct the pro forma cash flow statements for Bloomington...

Construct the pro forma cash flow statements for Bloomington Clinics for five years into the future using the data given in the case plus the most likely growth estimates. a. Wha

Coding system, What is the possible problem if there is more than one part ...

What is the possible problem if there is more than one part having the same code?

LTE, LTE

LTE

Presintering, Presintering is an operation in which the powder metallurgy ...

Presintering is an operation in which the powder metallurgy components after compaction are heated for a short time to a temperature considerably below the final sintering tempera

Ts diagram, how to find points on Ts diagram?

how to find points on Ts diagram?

Themodynamic, 1 kg of air is allowed to expand reversibly in a cylinder beh...

1 kg of air is allowed to expand reversibly in a cylinder behind a piston in such a way that the temperature remains constant at 260 degree while the volume is doubled.The piston i

Types of cyclic repetition blocks in dab or dvb broadcasting, Question: ...

Question: (a) Explain the three types of cyclic repetition blocks in DAB or DVB broadcasting. (b) DAB and DVB use stream and packet modes whereas MBMS uses broadcast and mu

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