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

Find voltage gain of junction field effect transistt, find voltage gain of ...

find voltage gain of junction field effect transistor

Electronics, explain compensated semiconductors

explain compensated semiconductors

Speed control in aircraft engine, Speed control in Aircraft Engine: Bec...

Speed control in Aircraft Engine: Because the APU is designed to run at a constant rpm, some means must be provided to control this speed. Such a control device is known as a

Assembly buildings - common fault, Assembly buildings - fire risk assessmen...

Assembly buildings - fire risk assessment: Common faults found in assembly buildings are: Combustible items left in protected routes or bedroom corridors Locked exi

.darlington pair, darlington pair assignment

darlington pair assignment

Aerospace vehicle tsructures, construction of mohrs circle

construction of mohrs circle

Fire fighting operations - high rise buildings, Fire fighting operations - ...

Fire fighting operations - high rise buildings: Inlets that allow the fire service to supplement to water to the sprinklers and to the fire mains are useful additions to the m

Cold shunt and misrun casting, Q. Discuss briefly the causes and remedies o...

Q. Discuss briefly the causes and remedies of misrun and cold shunts casting Cold Shunt and Misrun : When the metal is unable to fill the mould cavity completely and t

Ec assignment on concept of oscillators, basic concepts of oscillators

basic concepts of oscillators

Homework, name the functions of the CIPM

name the functions of the CIPM

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