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

Assignment, Real time processing is suitable when it is necesssary to have ...

Real time processing is suitable when it is necesssary to have the latest information in the following types of business operations

Spreading function and scattering function, In a CDMA system, the signal is...

In a CDMA system, the signal is spread over a large bandwidth by multiplying the transmitted symbol by a sequence of short pulses, also called chips. The system bandwidth is thus d

Mode iii interlaminar fracture toughness , Mode III Interlaminar Fracture T...

Mode III Interlaminar Fracture Toughness  The Mode III interlaminar fracture toughness of a composite can be measured using the split cantilever beam (SCB) geometry. Here, a c

Crystal structure, how can we determine the crystal structure of material b...

how can we determine the crystal structure of material by having interplanar spacing d?

Edc, Combination clipper

Combination clipper

Aad instruction, Ask question #Minimum 100 words acexplanation of aad with ...

Ask question #Minimum 100 words acexplanation of aad with examplescepted#

Fire prevention - fire risk assessment, Fire prevention - fire risk assessm...

Fire prevention - fire risk assessment: Fire prevention measures include: Reducing the combustible materials, Reducing the risk of ignition, Reducing

Effect of precipitate particles in strengthening, Q. Discuss the role of pr...

Q. Discuss the role of precipitate particles, strengthening crystalline materials against yield as low as well as high temperature of deformation. Ans. Effect of precipitate p

Assignment Engineering Design 1, Prepare a list of questions that should be...

Prepare a list of questions that should be resolved in identifying each of the following problems: a. Develop an improved manual gearshift for a mountain bike. b. Develop a hands-f

Aggregate properties - voids ratio and bulk density, Aggregate properties ...

Aggregate properties 1.Aim: To compare the bulk density, voids ratio and angularity number of a nominal single sized aggregate when subjected to different levels of compaction

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