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

Oil pumps - aircraft engine, OIL PUMPS The oil pumps fitted in a recirc...

OIL PUMPS The oil pumps fitted in a recirculatory system are normally gear-type or Gerotor type pumps. The pumps are usually mounted in a pack containing one pressure pump and

Coding system, What is the possible problem if there is more than one part ...

What is the possible problem if there is more than one part having the same code?

LAVOISIER LAPLACE''S LAW, GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATIO...

GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATION OF THERMODYNAMICS TOWARDS CHEMICAL PROCESS

Secondary operations in powder metallurgy methods, Q. What are the secondar...

Q. What are the secondary operations we apply in powder metallurgy methods. Give their use also. Ans. Secondary Processes of Manufacture : In addition to the basic proce

Nozzle guide vane inspection, Nozzle Guide Vane Inspection: Inspection ...

Nozzle Guide Vane Inspection: Inspection of the NGVs is possible using a strong light source and mirror, it is more probable however that a boroscope inspection will be require

Java, 2. Differentiate between stream oriented and data gram oriented socke...

2. Differentiate between stream oriented and data gram oriented socket in java?

Totipotency, Why do only plant cell have totipotency?

Why do only plant cell have totipotency?

Fire risk assessment in uk - fire protection engineering, Fire risk assessm...

Fire risk assessment in UK: In the UK FRAs are required by law in all commercial premises. But the FRAs are not the same as described in NFPA 551. The principles remain the

Coupling and cohesion, advantages and disadvantages of coupling and cohesio...

advantages and disadvantages of coupling and cohesion

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