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

Automatic synchronising - propellers, AUTOMATIC SYNCHRONISING: Automa...

AUTOMATIC SYNCHRONISING: Automatic Synchronisation uses engine driven synchronising alternators to detect electrically any increase or decrease in a slave engine's speed.  Ea

How does or gate work, Expertsmind.com  brings you unique solution in Elec...

Expertsmind.com  brings you unique solution in Electrical Engineering   How does OR gate work? An 'OR' gate is like two or more switches positioned in parallel.

Crystal imperfection, Q.   What is crystal imperfection? Briefly discuss ...

Q.   What is crystal imperfection? Briefly discuss all types of point defects in crystals. Ans. The various type of crystal imperfection are as follows: (1)   Point de

Electrometallurgy, explain electrometallurgy for metal extraction process u...

explain electrometallurgy for metal extraction process using a schematic diagram

Solvency ratios and profitability ratios, Solvency Ratios: Profitability R...

Solvency Ratios: Profitability Ratios: The profitability ratios determine the capacity of the company to generate the profits with the amount of shareholders investment. Again hig

Hoppala, Please help me to compare the minimum cell cost method and Vogel''...

Please help me to compare the minimum cell cost method and Vogel''s approximation method to find initial basic solution. Generally the sources indicated that the Vogel''s method gi

Engineering Chemistry , How much heat in kJ is released when 4.1 grams of e...

How much heat in kJ is released when 4.1 grams of ethanol burns? C2H5OH(l) + 3 O2(g) ? 2 CO2(g) + 3 H2O(l), ?H = -1366.8 kJ/mol rxn

Thrust indication - aircraft engine, Thrust indication: Although rpm ga...

Thrust indication: Although rpm gauges give an indication of the rotational speed of the compressor, they do have one drawback. They do not normally indicate the thrust output

Inlet duct arrangement in aircraft engine, Inlet duct arrangement in Aircra...

Inlet duct arrangement in Aircraft Engine: Wherever the APU is located, ducting will be required to bring air to the APU inlet. In figure 18.9. we can see that the inlet duct

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