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

Wing design for a sports glider , Wing design for a sports glider  Th...

Wing design for a sports glider  The justification of the aerofoil selection with appropriate data, based on tunnel work or computational analysis.  Sizing of the wing in

Exhaust jet mixing - aircraft design, Exhaust Jet Mixing: Figure shows ...

Exhaust Jet Mixing: Figure shows that the noise from the exhaust jet is the main contributor to the total noise generated by a low by-pass ratio turbo-fan. For a turbo-jet the

What is tact?, What is Tact? Tact is nothing but a situational score ene...

What is Tact? Tact is nothing but a situational score energy. Once I had gone to a Govt workplace for getting documentation. There I was informed to provide unwanted fee more th

Air flow control system – operation, Air flow control system – operation: ...

Air flow control system – operation: The stages of the compressor are matched to give the highest efficiency in the speed range maximum rev/min. To extend the range of smooth

Compressor, from suction side oil comes out

from suction side oil comes out

Derivative securities, Let C (K) denote a European vanilla Call option with...

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-ar

Comparison of 2-stroke and 4-stroke engines, COMPARISON OF 2-STROKE AND 4-S...

COMPARISON OF 2-STROKE AND 4-STROKE ENGINES: Two-stroke engine possesses the following advantages over the four stroke type: 1.      Because of its valueless construction, the

Intake anti-icing of aircraft engine, Intake anti-icing Operations of p...

Intake anti-icing Operations of present day aircraft necessitates flying in all weather conditions plus the fact that high velocity air induced into the intakes means a provisi

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