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

Electro slag welding process, Q. Describe the electro slag welding process....

Q. Describe the electro slag welding process. OR Describe electro slag welding process. What are the speci

Double acting propellers, Double acting propellers: This type of propel...

Double acting propellers: This type of propeller is normally fitted to larger engine and, because of engine requirements, is more complicated than the propellers fitted to smal

Cro, types of blocking osicillators

types of blocking osicillators

Design of steel structures , what does statements of loading mean ?

what does statements of loading mean ?

Aircraft maintenance, compression of gas turbine

compression of gas turbine

syed, risks involved in moving from a project-centric mode to a mix of pro...

risks involved in moving from a project-centric mode to a mix of projects and

Different types of handover in a gsm network, Question: (a) Cellular sy...

Question: (a) Cellular systems are based on two main types of multiplexing, what are those two types of multiplexing? Explain how they are used to improve channel allocation in

Centrifugal flow - compressors in aircraft, Centrifugal flow - Compressors ...

Centrifugal flow - Compressors in Aircraft: The centrifugal impeller is rotated at high speed by the turbine and centrifugal action causes the air between the impeller vanes to

Matrix stiffness method, how to get the deflection of a frame when a load W...

how to get the deflection of a frame when a load W s acting on a corner of the frame

Parmpreet, Hi, i want to get a quote for my communication networks assignme...

Hi, i want to get a quote for my communication networks assignment

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