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

Thermo electric thermometer, how thermoelecteric thermometer is contructed ...

how thermoelecteric thermometer is contructed and how it working

VLSI, what is meant by VMOS

what is meant by VMOS

Meer, write drawback of linear array

write drawback of linear array

Syntax and variable matlab, Syntax and variable in matlab The MATLAB ap...

Syntax and variable in matlab The MATLAB application is designed around the MATLAB terminology. The easiest method to perform MATLAB value is to type it in the Control Screen,

Help, how to build a earthquake proof building

how to build a earthquake proof building

Function, what is function independence.on software engineering

what is function independence.on software engineering

Thrust calculation- aeronautical engineering , Thrust calculation: The ...

Thrust calculation: The amount of thrust produced depends upon two things:- The MASS of air which is moved rearwards in a given time, the ACCELERATION imparted to the air.It

Ideal intake conditions - aircraft engine, Ideal intake conditions: For...

Ideal intake conditions: For air to flow smoothly through a compressor, its velocity should be about 0.5 mach at the compressor inlet; this includes aircraft flying faster than

Phase array modelling, QUESTION: Modelling of phase array antenna for medic...

QUESTION: Modelling of phase array antenna for medical imaging. INSTRUCTION: The expert must provide a correct mathematical model solution and detail by detail steps of how it can

Capital structure, how to identify the capital structure of the company?

how to identify the capital structure of the company?

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