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

Thrust calculation- aeronautical engineering , Thrust calculation: The ...

Thrust calculation: The amount of thrust produced depends upon two things:- The MASS of air which is moved rearwards in a given time, the ACCELERATION imparted to the air.It

Control surfaces , Control Surfaces  As with a flight control system...

Control Surfaces  As with a flight control system, a guidance algorithm uses control surfaces to control the behaviour of an airframe.         - Rudder, ailerons, elev

Levelling Theory and Computation, Two readings i.e., 1.64m, and 0.73m, were...

Two readings i.e., 1.64m, and 0.73m, were taken during leveling procedure to define the slope of centerline of a bridge at points A, and B. If distance AB = 50m, find the slope of

Digit, Design the counters for the digital clock Minimum 100 words accepted...

Design the counters for the digital clock Minimum 100 words accepted#

Mechanical pulverization, Mechanical pulverization method is applicable to...

Mechanical pulverization method is applicable to brittle metals like antimony. Many varieties of mechanical pulverizers are in use; some of these have counter rotating plates or r

Irr, How do you calculate IRR

How do you calculate IRR

Vertical spread, What are the no-arbitrage lower bound, and the no-arbitrag...

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread

Financial management, Explain and identify the different sources of finance...

Explain and identify the different sources of finances which are available to businesses and which sources of finance are internal sources and which are external sources?

Electrometallurgy, explain electrometallurgy for metal extraction process u...

explain electrometallurgy for metal extraction process using a schematic diagram

Legal issues and professional ethics in engineering, Write a detailed repor...

Write a detailed report under the theme "Legal Issues and Professional ethics in Engineering". Some of the topics that you can consider, but not limited to them, are as follow:

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