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

Router, how does the Ip message finally reassemble?

how does the Ip message finally reassemble?

TANGENT GALVANOMETER, WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH I...

WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH INCREASING OR DECREASING CURRENT?

Control surfaces , Control Surfaces  As with a flight control system...

Control Surfaces  As with a flight control system, a guidance algorithm uses control surfaces to control the behaviour of an airframe.         - Rudder, ailerons, elev

Mode ii interlaminar fracture , The Mode II fracture toughness is measured ...

The Mode II fracture toughness is measured using the ENF  Typically, the specimen length is 120 mm, the width B is 20 mm, the thickness is between 3 and 5 mm and the distance be

Removing aircraft engines, Removing Aircraft Engines: To prepare an air...

Removing Aircraft Engines: To prepare an aircraft for engine removal, check that the aircraft weight and balance will not be adversely effected when the engine is removed. Mos

Homework, name the functions of the CIPM

name the functions of the CIPM

Laurent polynomial, how to perform division of two laurent polynomials?

how to perform division of two laurent polynomials?

Shadow detection and removal, #question.Can you please suggest a method in ...

#question.Can you please suggest a method in MATLAB for shadow detection and removal.

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