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

Casting alloys, Casting Alloys are - (i) Permanent moulds...

Casting Alloys are - (i) Permanent moulds are commonly used for the casting of grey iron, aluminum alloys and magnesium alloys. (ii) Slush Casting

What is the company’s net working capital, Working capital: Laurel Electron...

Working capital: Laurel Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,235,455, accounts payables wo

Damping coefficint of canatrd of aircraft, what will be the methodology to ...

what will be the methodology to calculate pitching moment damping coefficient of canrad of aircraft

VISIBLE LIGHT COMMUNICATION, Ask question #Minium 100 words accepted#RELATE...

Ask question #Minium 100 words accepted#RELATED QUESTION THAT CAN BE ASKED IN DEFENSE

What is thermodynamics, Electrical Engineering Online Electrical Engineerin...

Electrical Engineering Online Electrical Engineering Study Sit

Human physiology, conclusion for epithelial tissue

conclusion for epithelial tissue

Developing the optics and imaging components of a mi, I have senior design ...

I have senior design this semester and my professor give my this project. could you help me

Power factor., how can decrease the power factor of any electric circuit

how can decrease the power factor of any electric circuit

Architecture.., draw folded plate roof structure on multi purpose hall?

draw folded plate roof structure on multi purpose hall?

Electronic devices, give a criticalanalysis of a zener diodedata with suita...

give a criticalanalysis of a zener diodedata with suitable chracteristicsand applications

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