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

Partial derivatives, #question.y = lny^2/x^2+Y^2

#question.y = lny^2/x^2+Y^2

Clipping circuit, Disadvantage of shunt diode clipper

Disadvantage of shunt diode clipper

Risk management, discuss the value of risk analysis and how the process can...

discuss the value of risk analysis and how the process can be used t derive project management decisions under conditions of uncertainty

Edc, Combination clipper

Combination clipper

Shell moulding process merits and demerits, Q. Describe shell moulding proc...

Q. Describe shell moulding process merits and demerits . Ans. Shell moulding process Merits (i) Bett

Rays optics , what is ray optics

what is ray optics

Inheritance and polymorphism, The objective of this programming assignment ...

The objective of this programming assignment is to experience the use of inheritance in Java and to see how polymorphism works with inheritance in Java. The assignment involves wri

Shift registers, Shift registers A register is a number of flip-flops a...

Shift registers A register is a number of flip-flops arranged in a circuit used for storing data. A shift register is one that is designed to move the data along the register.

Information technology, recent technology

recent technology

Case study, M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meeru...

M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meerut, the maximum capacity of which is 200 units per month. Details of raw materials which go into the making of 1 units

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