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

Testing of propellers, Testing After Install After installation of a pro...

Testing After Install After installation of a propeller, the engine must be ground run in order to check the propeller for correct function and operation.  Aircraft propeller in

Application to the axial flow compressor, APPLICATION TO THE AXIAL FLOW COM...

APPLICATION TO THE AXIAL FLOW COMPRESSOR: In order for the compressor to deliver a high mass airflow for a minimum effort required to drive it, it is important that all the com

Vlsi, Working of bi- CMOS invertor in vlsi

Working of bi- CMOS invertor in vlsi

engneering mechanics, the speed of an object at the end of 4 succesive sec...

the speed of an object at the end of 4 succesive seconds is 2o,25,3o and 35 m/sec respectvly, what is the acceleration of this object?

Solid state devices, Derive an expression for electron concentration in con...

Derive an expression for electron concentration in conduction band and hole concentration in valance band

Analog digital converter , Analog digital converter  Analog digital con...

Analog digital converter  Analog digital converter digitises the conditioned signal and presents it in a digital form, which is more convenient for long distance transmission,

Water haedness, hardness of bore well water is less than sea water

hardness of bore well water is less than sea water

Matlab, Provided a 1D array of integers, find all combinations of 3 values ...

Provided a 1D array of integers, find all combinations of 3 values from this set such that: a+b+c=0 For example, if one were provided with the set [3 1 3 -4 -6], the resulting answ

Cisco, how can i operate cisco switches without packet tracer?

how can i operate cisco switches without packet tracer?

How do comets get their tails, How do comets get their tails? - Most comet...

How do comets get their tails? - Most comets stay frozen in the outer solar system. Only a few enter the inner solar system where they can grow tails. - When a comet nears the sun

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