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

Commercial buildings - fire protection engineering, Commercial buildings - ...

Commercial buildings - fire protection engineering: The term 'commercial buildings' refers to any buildings that are not residential buildings and that do not fall under the m

Fire prevention - fire risk assessment, Fire prevention - fire risk assessm...

Fire prevention - fire risk assessment: Fire prevention measures include: Reducing the combustible materials, Reducing the risk of ignition, Reducing

The decoupled dynamics, The longitudinal and lateral states of the decouple...

The longitudinal and lateral states of the decoupled linear dynamics are distinct sets of variables. They are conveniently remembered by the flight-control engineer by visualising

Germanium, why germanium become intrinsic at high temperature

why germanium become intrinsic at high temperature

Jfet self biasing, VDD=20V,RG=1MOHM,RD=3.3KOHM,RS=1KOHM,IDSS=8MA,VP=-6V

VDD=20V,RG=1MOHM,RD=3.3KOHM,RS=1KOHM,IDSS=8MA,VP=-6V

Market segmentation analysis for an organization, 1. Briefly explain how to...

1. Briefly explain how to conduct a market segmentation analysis for an organization. Answer: There are a number of ways by which the market segmentation analysis of an organizatio

Probability, Suggest an example of a decision from your own experience whic...

Suggest an example of a decision from your own experience which you feel is best treated as a decision without probabilities. What principle of choice would seem appropriate?

Moulding materials, The commonly used moulding materials for mould making...

The commonly used moulding materials for mould making can be broadly classified into the following two groups :             (a) Metals : Including grey cast iron, steel and an

Radar systems, Radar Systems Radar is an acronym for RAdio Detection...

Radar Systems Radar is an acronym for RAdio Detection And Ranging.  A radar uses an antenna to transmit a series of electromagnetic waves or pulses, and an antenna (usual

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