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

Compositional defects, Q. Explain the compositional defects. Ans. ...

Q. Explain the compositional defects. Ans. Compositional Defect: This defect due to (a) Alloying an element to original crystal. (b) Impuring atom during origi

Linear programing, Description of the Diet Problem The goal of the diet pro...

Description of the Diet Problem The goal of the diet problem is to find an ”optimal” combination of foods that will satisfy all the daily nutritional requirements of an individual.

Product applications of powder metallurgy, Q. Describe two major product ap...

Q. Describe two major product applications of powder metallurgy. Ans. Following are some typical applications of powder metallurgy. (i) Refractory metal : P

Light wave and matters, Expertsmind.com brings you unique solution in phy...

Expertsmind.com brings you unique solution in physics - What is light? - - Light is an electromagnetic wave that also comes in "photons"

Heisenberg''s uncertainty principle , According to this it is impossible to...

According to this it is impossible to specify precisely and simultaneously two physical quantities those are canonically conjugate to each other and the product of the uncertainty

Gas turbine fuel properties - aircraft design, Gas turbine fuel properties ...

Gas turbine fuel properties and specification In the earliest days of the gas turbine engine, kerosene was regarded as the most suitable fuel. It commended itself on the grounds

Maintenance of aircraft under “b” conditions, Maintenance of Aircraft under...

Maintenance of Aircraft under “B” conditions: The maintenance of aircraft flying under "B" conditions must be adequate in relation to the number and duration of the flight

Mechanical engineering, What is the specific heat of water at different pre...

What is the specific heat of water at different pressure and different temperature? Is it possible to boil the water below atmospheric pressure and use as a hot bathing water?

Compressor characteristics, Compressor characteristics: When a compress...

Compressor characteristics: When a compressor is designed it is essential to establish the points at which it is likely to surge. Tests are carried out to determine the relati

LTE, LTE

LTE

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