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

Matlab, program how to estimate the inner curve using spline interpolation

program how to estimate the inner curve using spline interpolation

Civil engineering structures, I need help for my project report plz. > Prec...

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

Drilling assignment, I need help in doing a project in excel that has ever...

I need help in doing a project in excel that has everything about drilling like mud pump etc ..

Mass balance reactions, A continuous fractionating column separates benzene...

A continuous fractionating column separates benzene and toluene into two product streams. We were given all the mass fractions which makes this question easy because all we must ca

Guidance systems , The design and implementation of an autonomous guidance ...

The design and implementation of an autonomous guidance system requires knowledge and an understanding of a wide range of technologies, from the physical dynamics of the vehicle (i

Microbiology, Explain the following observations: cells of Escherichia coli...

Explain the following observations: cells of Escherichia coli fermenting glucose grow faster when NO3 - is supplied to the culture and then grow even faster when the culture is hig

#LED MOVING DISPLAY, want a circuit manual of previous led moving dispaly

want a circuit manual of previous led moving dispaly

Programming, A charitable organization wants to design a special ATM machin...

A charitable organization wants to design a special ATM machine to be used by needy people. The association supplies the needy person with a pin number to be able to use the ATM

Manufacturing process, why is it necessary for all engieers to about manufa...

why is it necessary for all engieers to about manufacturing process

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