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

Light-emitting diode, Light-emitting diode: One of the most common ligh...

Light-emitting diode: One of the most common light sources used in electronics is the "Light Emitting Diode" (LED).  A LED is a two terminal semiconductor device comprising a p

Building economics, with sketches,describe single upper flows

with sketches,describe single upper flows

Financial managment, what is the consideration of time importance in financ...

what is the consideration of time importance in financial management? how can time time be adjust illustrate you?

representing vectors in different axes, Representing vectors in different ...

Representing vectors in different axes All positions, velocities, momentums and accelerations are really relative positions, relative velocities, relative momentums and relativ

Which scheme provides the best spectrum capacity, Question: (a) What a...

Question: (a) What are the criteria that a frequency planner and a network engineer need to consider during cellular planning and design. (b) Assuming that you work as a c

Software design principles, explain the design should be traceable to the a...

explain the design should be traceable to the analysis model

Mechanical engineering, detail information about production planning in too...

detail information about production planning in tool engineering

Internal rate of return irr, Internal rate of return IRR In case of IRR met...

Internal rate of return IRR In case of IRR method cash flow are analyzed taking into account the magnitude and the timing. IRR is that discount rate which gives a net present value

Lean enterprise, a department manufactures a produt using a kanban system. ...

a department manufactures a produt using a kanban system. data is demand/hr= 30, container size= 5, unit processing time= 1.25 min. find the minimum number of kanban assuming reple

Smoke control system, Smoke control system: Where smoke control is ins...

Smoke control system: Where smoke control is installed in a building it is usual for there to also be sprinkler protection to the building and its contents.  This is necessary

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