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

Ignition systems in aircraft engine, IGNITION SYSTEMS The outline of a ...

IGNITION SYSTEMS The outline of a high energy ignition system is illustrated in the figure. Each high energy ignition unit has a low voltage supply which is controlled by the

Calculating the thrust of the engine - engine performance, Calculating the ...

Calculating the thrust of the engine: When applying the above method to calculate the individual thrust loads on the various components it is assumed that the engine is static.

Homework, What are the no-arbitrage lower bound, and the no-arbitrage upper...

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread C(k1) - C(k2) ?

Write a program to find the area under the curve y =, #questiWrite a progra...

#questiWrite a program to find the area under the curve y = f(x) between x = a and x = b, integrate y = f(x) between the limits of a and b. The area under a curve between two point

Microprocessor, working of microprocessor

working of microprocessor

Numerical methods, Numerical solutions to equations: Many practical p...

Numerical solutions to equations: Many practical problems in engineering involve complex boundary conditions and variable properties that cannot be solved analytically, creat

Isdn service characterization, what is isdn service characterization

what is isdn service characterization

Propeller construction, PROPELLER CONSTRUCTION METAL PROPELLERS Mo...

PROPELLER CONSTRUCTION METAL PROPELLERS Most metal propellers have forged alloy blades protected from corrosion by anodising and often further protected by polyurethane en

Ec assignment on concept of oscillators, basic concepts of oscillators

basic concepts of oscillators

Matlab codes for extended kalman filter, I would like to have simple matlab...

I would like to have simple matlab codes for measuring the changes in amplitude and frequency of pure sinusoidal signal in a disturbed environment and subsequently to show the resu

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