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

Case1, Flifla sells tomatoes every day in Suk al Marqazi, the downtown frui...

Flifla sells tomatoes every day in Suk al Marqazi, the downtown fruit and vegetable market. He finds that he can order tomatoes in crates of 25 kg and he is able to stock a maximum

Hemodynamics, Assignment

Assignment

Single input unbalanced output differential amplifier, dc and ac analysis

dc and ac analysis

Welding techniques - plasma arc welding (paw), Plasma Arc Welding (PAW) is...

Plasma Arc Welding (PAW) is a special form of gas tungsten arc welding in which constricted plasma arc is directed at the weld area. In PAW, a tungsten electrode is contained in a

Airflow through divergent and convergent ducts, DIVERGENT DUCT A divergen...

DIVERGENT DUCT A divergent duct widens out as the airflow progresses through it. At subsonic speeds the effect of this kind of duct is to decrease the velocity and increase the p

Design a pavilion , i need somone to design a pavilion for me

i need somone to design a pavilion for me

Co2 molds (carbon dioxide moulding), CO 2 Molds (Carbon dioxide Moulding...

CO 2 Molds (Carbon dioxide Moulding) is the process of hardening the moulds and cores by using carbon dioxide and sodium silicate liquid base binder is one of the most widely u

Common faults - fire safety management, Common faults - Fire safety managem...

Common faults - Fire safety management: Common faults found are: Combustible items left in protected routes Locked exits Fire doors wedged open Exits obstru

Engineering Mechanics-Statics, http://www.cramster.com/answers-apr-12/mecha...

http://www.cramster.com/answers-apr-12/mechanical-engineering/engineering-mechanics-static_2386217.aspx?rec=0

Engineering seminar, Hey ,How are you? I need help in another class , its 1...

Hey ,How are you? I need help in another class , its 1 credit class ( Engineering seminar ), how to choose s.d in this class , , ,so we want describing our project which is ( radi

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