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

Roof bolt support performance, A certain coal mine has weak layer comprisin...

A certain coal mine has weak layer comprising of 10cm, 11cm, 9cm, 12cm, 15cm , and 19cm of inter laminated shales and mudstone. Design a full column resin bolt support system if th

Function, what is function independence.on software engineering

what is function independence.on software engineering

Dsp, relationship between z plane and s plane in bilinear transformation me...

relationship between z plane and s plane in bilinear transformation method

History and theory of architechure, centralized organization

centralized organization

Michelson and morley experiment, WHY IT IS NOT POSSIBLE

WHY IT IS NOT POSSIBLE

Diode, tunnel diode

tunnel diode

International finance, at the beginning of year 1 the terranian central ban...

at the beginning of year 1 the terranian central bank conducted k100 million of dollar selling/terranian kwacha buying intervention. The intervention was undertaken at the rate of

Aviation legislation - aircraft weighing, AIRCRAFT WEIGHING NOTE: T...

AIRCRAFT WEIGHING NOTE: The C.A.A. will consider applications from aircraft constructors and operators to weigh certain types of aircraft on a sampling basis. (i.e. repre

Tcp/ip, Discuss the effect of supernetting on routing and explain how the i...

Discuss the effect of supernetting on routing and explain how the issue has been tackled. Effect: increased routing information

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

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