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

Turbine engines cooling , Turbine engines cooling : Turbine engines are...

Turbine engines cooling : Turbine engines are designed to convert heat energy into mechanical energy. The combustion process is continuous and, therefore, heat is produced. On

Financial strategy and operations, Q. A. Microfinance case How would you va...

Q. A. Microfinance case How would you value the price of a Microfinance Institution? Using data available on the net, explain what would you consider the value of SKS (India) or Co

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?

Eng, all projrct is correct excpet for last part it will not fire a table...

all projrct is correct excpet for last part it will not fire a table

Applications of De, What are the applications of de.moivres theorem in soft...

What are the applications of de.moivres theorem in software engineering,computer science,programming and computer engineering? if there are any applications,then,what are that?

Flow at low mach number and zero incidence about m6 wing, Flow at low Mach ...

Flow at low Mach number and zero incidence about M6 wing Results from FP were obtained corresponding to M ∞ = 0.2 and a = 0 and, as noted, with the input files generated by FP

Telecommunication Networks., Hi there, I''ve sent an email to you guys abou...

Hi there, I''ve sent an email to you guys about Telecommunication Networks assignment and I haven''t yet received any reply. Pleases let me know if you have received it. Thank yo

Thermodynamics of materials, outline five (5) areas where thermodynamics ca...

outline five (5) areas where thermodynamics can be applied in materials engineering

Electronics, how to make an amplifier circuit ?

how to make an amplifier circuit ?

Agric Engineering, soil and water and irrigational projects

soil and water and irrigational projects

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