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

Civil construction, what a problem when we do a construction project

what a problem when we do a construction project

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"

Capital Budgeting Project.., Assignment: You are interested in proposing a ...

Assignment: You are interested in proposing a new venture to the management of your company. Pertinent financial information is given below. BALANCE SHEET Cash 2,000,000 Accounts

Effects of temperature and altitude on engine, Effects of Temperature and A...

Effects of Temperature and Altitude. Cold and/or Low On cold days the air density will increase. If the engine has a ‘part throttle rating' and the throttle is advanced to

Decision table software engineering, Write a decision table that specifies ...

Write a decision table that specifies the rules for the game of checkers.

Engine PW4168 or PW4168A, How is the overspeed solenoid cutback valve opera...

How is the overspeed solenoid cutback valve operate when Engine overspeed happen?

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

how thermoelecteric thermometer is contructed and how it working

Project report, I need help for my project report plz. > Precast concrete p...

I need help for my project report plz. > Precast concrete panels manufactured in factory environments and rapidly cured using steam are being used for the walls of shallow foundati

Installation of propeller, INSTALLATION OF PROPELLER The method of inst...

INSTALLATION OF PROPELLER The method of installation will depend on the type of propeller, and all instructions detailed in the appropriate AMM should be carefully followed; th

Avionic systems design- static stability derivatives, Static stability der...

Static stability derivatives Static stability requires that a restoring action to any motions caused by forces and moments is auto-matically produced along and about the same a

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