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

Re-heat ignition system in aircraft engine, Re-heat Ignition The atomis...

Re-heat Ignition The atomised fuel spray is fed into the re-heat jet pipe and ignited by one of three methods:- • Spark Ignition • Hot Streak Ignition • Catalytic Ignition a

Aeroengine - linear blade cascade, A blade cascade is a row of evenly space...

A blade cascade is a row of evenly space yp dentical blades. Approximates to a turbomachinery rotor or stator if the radius the annulus is large compared with the bl the annulus is

Damage limits and repair in cold section inspection , Damage Limits and Rep...

Damage Limits and Repair Minor damage to compressor and fan blades may be repaired provided the damage is within the allowable limits established by the manufacturer in the AMM

Tabular method, Ask question #Minimumsolve the following convolution in tab...

Ask question #Minimumsolve the following convolution in tabular form X(n)={1 2 -3 4 } h(n)={1 2 3 4 } 100 words accepted#

What is networth?, What is Networth? Networth is the complete resources ...

What is Networth? Networth is the complete resources without complete obligations of an organization. Networth means equity and it is the present resources without present oblig

Propeller governing mode, Propeller governing mode: The speed lever is ...

Propeller governing mode: The speed lever is placed in the high position. The engine is operating at 97 percent. As the power lever is advanced ahead of the flight idle deten

Clamper, what is clampers and how many types

what is clampers and how many types

Projects., Ten projects only agricultural engineer will have say

Ten projects only agricultural engineer will have say

Enhancing finance revenue.., Enhancing finance revenue In Corporate Fin...

Enhancing finance revenue In Corporate Finance and Business financial is the area of financial that promotion with financial options of organizations. Its main objective is to

Engineering Economy, I need the answers of these three problems. 1. How muc...

I need the answers of these three problems. 1. How much money would be in a savings count that started with a deposit of $2,000 in year 1 with each succeeding amount increasing by

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