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 properties of aircraft, Fuel properties of Aircraft: EASE OF FLOW...

Fuel properties of Aircraft: EASE OF FLOW The ease of flow of a fuel is mainly a question of viscosity, but impurities such as ice, dust, wax, etc., may cause blockages in

Swell Factors, The effect of swell factors on volumes

The effect of swell factors on volumes

INTERNATIONAL TRADE, AS A CONSULTANT YOU ARE REQUIRED TO HIGHLIGHT THE BASI...

AS A CONSULTANT YOU ARE REQUIRED TO HIGHLIGHT THE BASIS OF INTERNATIONAL AND SHOW WHY YOU WOULD RECOMMEND INTERNATIONAL TRADE TO THE GOVERNMENT OF GHANA

Coil, explain coil ?

explain coil ?

True or false, Beta coefficients and standard deviation may be used as indi...

Beta coefficients and standard deviation may be used as indicators of risk

Production homework, my assingment is in petroleum engineering. Its product...

my assingment is in petroleum engineering. Its production class.Can you help me?

Jupiter and saturn, Expertsmind.com brings you unique solution in Electri...

Expertsmind.com brings you unique solution in Electrical Engineering - Jupiter and Saturn are made almost entirely of hydrogen and helium with

Probability distribution in matlab, I would like to ask in detail. How can ...

I would like to ask in detail. How can I attach the files?

Regarding my project, i want to do project in the area wing in aircraft...p...

i want to do project in the area wing in aircraft...please give some sugestions or ideas in that

Structural engineering question, I have a 30'' simple span beam, braced at ...

I have a 30'' simple span beam, braced at the supports only. Uniform load is 1200 plf. I need deflection limited to L/400. What size steel beam do I need?

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