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

Basic engine design considerations, BASIC ENGINE DESIGN CONSIDERATIONS ...

BASIC ENGINE DESIGN CONSIDERATIONS Effect of engine size: The two parameters involved are the diameter, d and stroke, L of the engine. The effect of doubling each of this

Negative equity, An accountant says that your firm has negative equity so ...

An accountant says that your firm has negative equity so the firm is bankrupt. discuss ?

Resolving power and rayleigh criterion of resolution, Q. Explain Rayleigh c...

Q. Explain Rayleigh criterion of resolution. What is meant by resolving power of grating? Ans.   Resolving Power (i)  Meaning of Resolution : The resolving power of

Assembly buildings - common fault, Assembly buildings - fire risk assessmen...

Assembly buildings - fire risk assessment: Common faults found in assembly buildings are: Combustible items left in protected routes or bedroom corridors Locked exi

Governing equations of typical section aerofoil, We recall the "typical sec...

We recall the "typical section" aerofoil model with oscillating pitching and plunging motions to represent the torsional and bending behaviour of a wing structure with large aspect

Basic principles - propeller, BASIC PRINCIPLES : The purpose of a prope...

BASIC PRINCIPLES : The purpose of a propeller is to convert the power developed by the engine into a useful force called 'Thrust'. This force must be equal to and opposite in

Aviation legislation - permit to fly, PERMIT TO FLY A Permit to Fly may...

PERMIT TO FLY A Permit to Fly may be issued to an aircraft that does not, for a variety of reasons, fully comply for a Certificate of Airworthiness. These reasons might be b

Actuators , Actuators  The actuator consists of the control surfaces...

Actuators  The actuator consists of the control surfaces and associated servomechanisms, and is used to change the missile attitude and trajectory or flight path.

Fluid mechanics, what is difference between lagrangian aparoach and euleria...

what is difference between lagrangian aparoach and eulerian approach?

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