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

Fuel control system in aircraft engine, Fuel control system in Aircraft Eng...

Fuel control system in Aircraft Engine: The computer controls the fuel flow to the engine to maintain a constant rotor RPM. During normal operation the optimum engine/rotor spe

It management, Process management

Process management

Strength of materials, Applications of the subject strength of materials

Applications of the subject strength of materials

Flight dynamics - velocity component, Force, Moment, Velocity and Angular V...

Force, Moment, Velocity and Angular Velocity Components • Aerodynamic Force Components - X, Y, Z • Velocity Components - U, V, W (or Vx, Vy, Vx) • Angular Velocity Components - P,

Application of Mechatronics Engineering, This is an individual task in the ...

This is an individual task in the form of an essay of between 900 and 1300 words. Illustrative material such as pictures may be included in addition to the text.

Mathematics-1, dy/dx=2xy^2 *1/e^x +y

dy/dx=2xy^2 *1/e^x +y

Propeller track, PROPELLER TRACK An out of track propeller will suffer ...

PROPELLER TRACK An out of track propeller will suffer an imbalance caused by the Dynamic and Aerodynamic being out of balance. Propeller track is the path followed by a blad

Free Vibration Problem, I have a multi-part three mass, three spring and th...

I have a multi-part three mass, three spring and three coordinate system that I need to find: The free vibration of the second mode Magnitude of the steady-state force based on a g

Genetics, what is genetic engineering

what is genetic engineering

Integrated circuits, Integrated circuits: Integrated circuits, or IC's,...

Integrated circuits: Integrated circuits, or IC's, have changed the entire electronics industry. Before IC's were developed, all electronic circuits consisted of individual (d

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