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

Survey, Operations invending in chain survey

Operations invending in chain survey

Mergers & acquisitions / valuing synergies, 1-calculate the present value o...

1-calculate the present value of the expected synergies. ( Assume a tax rate of 35%. a discount rate of 10% suitable for the cost oand revenue synergies combined, and inflation of

Ceramics, ceramics under heat

ceramics under heat

Mechanical design 2, Mechanical Design (48650) – Spring Semester 2012 Optim...

Mechanical Design (48650) – Spring Semester 2012 Optimisation Assignment – BUILDING A ROAD Teams of THREE to FIVE [3 to 5] – Worth 20% of the Semester Grade Due: Thursday 23rd Marc

What are the elements limiting higher data rate in networks, Question: ...

Question: (a) What are the elements limiting high data rate in cellular networks? (b) Describe the following characteristics of 4G mobile networks: - Always on - RAN A

Engineering science , the axle diameters of differential wheel and axle lif...

the axle diameters of differential wheel and axle lifting machine are 254mm and 129mm respectively.the load has a mass of 36kg and the effort required is 300N.if the efficiency is

Can you help in my assignment, can you help me in my assignment in Engineer...

can you help me in my assignment in Engineering project and operation management course??

Compressor damage, Compressor Damage Foreign objects often enter engine...

Compressor Damage Foreign objects often enter engine air intakes either accidentally or through carelessness. Items such as pens, pencils cigarette lighters etc. can be drawn o

Angle and bearing, #question.what is angle and bearing.

#question.what is angle and bearing.

Surveying construction with applications, need help with quiz 40 questions

need help with quiz 40 questions

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