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

Efficient market hypothesis, the nature and importance of the efficient mar...

the nature and importance of the efficient market hypothesis and comment on the implications for managers and investors?

Traffic management, (a) Discuss the requirements, specifications and specia...

(a) Discuss the requirements, specifications and special requirements for the  design of arterial road networks and residential area street networks in a developing suburban region

Non-coplaner, ''If a non-coplaner force system is acted upon by equal and o...

''If a non-coplaner force system is acted upon by equal and opposite forces,it must be in equilibrium''.State this statement is true or false.Please,give me a reason.

Summing amplifier, Summing amplifier: As the title implies, this is an ...

Summing amplifier: As the title implies, this is an adding device.  The circuit can take any number of voltage inputs, and the output voltage is simply the sum of these inputs.

..Evans Diagram, would you help with Evans diagram( draw and explain) for I...

would you help with Evans diagram( draw and explain) for Iron in seawater,and how variability of Oxygen concentration affect the electrode potential vs.current?

Mos ic-s, MOS IC-S: Not all IC's are constructed using bipolar componen...

MOS IC-S: Not all IC's are constructed using bipolar components, IC's are often designed to utilize either bipolar transistors or "Field-Effect transistors" (FETS).  The Field

Compositional defects, Q.   Explain the compositional defects. Ans. ...

Q.   Explain the compositional defects. Ans. Compositional Defect: This defect due to (a)    Alloying an element to original crystal. (b)   Impuring atom during origi

ALGORITHM, write an algorithm to find a number that multiplies your name 10...

write an algorithm to find a number that multiplies your name 10 times

Aerodynamics-source of drage, Source of drage Total Drag on an aerofoil...

Source of drage Total Drag on an aerofoil is called profile drag - Skin friction • due to tangential force arising from friction - Pressure • Form - due to the inte

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