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

Circuit analysis, pls reply fast

pls reply fast

Imaging infrared seekers , Imaging Infrared Seekers A more common appr...

Imaging Infrared Seekers A more common approach is to use an infrared waveband where there is a large amount of ambient light from the thermal emission of the background. Th

Trading , how to find the net profit of given data

how to find the net profit of given data

#Parcellary Survey, What is Parcellary Survey?

What is Parcellary Survey?

Absolute return fund, What is Absolute Return Fund The absolute return stra...

What is Absolute Return Fund The absolute return strategies develop returns from active management with small or no underlying market exposure, seeking to achieve positive returns

Iosipescu shear test, A second way to determine the shear modulus is to use...

A second way to determine the shear modulus is to use the Isopescu shear test. The sample is placed in a jig and loaded as shown. Under load, a region of pure shear exists

Law of gearing, define lawof gearing

define lawof gearing

Engineering mechanics, types of couple

types of couple

Material properties and selection, conclusion

conclusion

Capital structure - case study, The following is the capital structure of X...

The following is the capital structure of X ltd on 31st Dec2003

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