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

Embossing and coining, Embossing is a forming operation used to create inde...

Embossing is a forming operation used to create indentation in the sheet, such as raised (indented) lettering or strengthening rips, as shown in fig. Some stretching and thinning o

Oscilloscope, connecting probe in CRO causes

connecting probe in CRO causes

Hot and cold working, advantages and disadvantages of cold and hot working

advantages and disadvantages of cold and hot working

Polymorphism, Q.  Define the polymorphism. Ans. POLYMORPHISM: It is d...

Q.  Define the polymorphism. Ans. POLYMORPHISM: It is defined as the change in atomic structure which occurs at a definite transformation temperature. The cooling diagram of

ROBOT, CYLINDRICAL COORDINATE

CYLINDRICAL COORDINATE

Forgin exchange, The following exchange rates are available to you. (You ca...

The following exchange rates are available to you. (You can buy or sell at the stated rates.) Mt. Fuji Bank ¥85.00/$ Mt. Rushmore Bank SF1.356/$ Mt. Blanc Bank ¥64.74/SF Assume t

#LED MOVING DISPLAY, want a circuit manual of previous led moving dispaly

want a circuit manual of previous led moving dispaly

machine molding, Machine molding is suitable for the faster and uniform qu...

Machine molding is suitable for the faster and uniform quality moulds, needed for mass production of castings. For preparing the moulds, various moulding machines are used. Majorit

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