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

Principles of fire alarm systems, Principles of Fire Alarm Systems: Fi...

Principles of Fire Alarm Systems: Fire alarm systems usually perform two primary functions.   Firstly, they provide a means for warning people throughout the building that the

Thin-skinned structures , Thin-skinned Structures  The SCB geometry can...

Thin-skinned Structures  The SCB geometry can't be used because the skins are too flexible.  Instead, a centre-notch flexure (CNF) test can be used. A hole is drilled abo

Cash flow statement, Cash flow statement is one of the three necessary repo...

Cash flow statement is one of the three necessary reporting & measurement systems for a company. The cash flow statement gives a third perspective alongside the profit & loss accou

Facilty design, List three advantages and three disadvantages of open offic...

List three advantages and three disadvantages of open office spaces.

Hot and cold working, advantages and disadvantages of cold and hot working

advantages and disadvantages of cold and hot working

Water treatment plant , i need to design a water treatment plant with raw w...

i need to design a water treatment plant with raw water entering ph of 10 and needs to have a ph of 7 when leaving the treatment process the rate of flow 260lt/sec

Synchro resolvers for low load, Synchro resolvers for low load: Both tr...

Synchro resolvers for low load: Both transmitter and receiver rotors are energised by the same AC supply and will induce equal and opposing voltages in the stator coils provide

Fire evacuation signals, Fi r e evacuation signals: Members of the ...

Fi r e evacuation signals: Members of the public are known not to respond positively to fire evacuation signals. People will often try to ignore the signal and will try to

Electronic , how to work ever moll models

how to work ever moll models

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