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

Avionic systems design- stability derivatives, The idea of stability deriva...

The idea of stability derivatives is to approximate the general functional relationship between any force ormoment variable and the dynamic or control variables as a Taylor series

Lead time, Enumerate possible impact of having inadequate system design in ...

Enumerate possible impact of having inadequate system design in the lead time and engineering cost?

Use of multicylinder engine, USE OF MULTICYLINDER ENGINE If, in a multi...

USE OF MULTICYLINDER ENGINE If, in a multi cylinder engine, power strokes are staggered, the limitation of flywheel can be overcome to a large extent. Torque diagram for 2 cyli

Numerical method, find the newton raphson iterative formula for a reciproca...

find the newton raphson iterative formula for a reciprocal of a number N and hence find the value of 1/23.correct to 5 place of decimal

Photoelectric effect, When light of frequency greater than threshold freque...

When light of frequency greater than threshold frequency fall on a metal surface, electrons are emitted out from metal surface this effect is known as photoelectric effect. Laws

Robotics, how to become robotics engneer

how to become robotics engneer

Structural engineering, The closed form solutions for ?max and Mmax are giv...

The closed form solutions for ?max and Mmax are given on page 16.1-276 for several axial loads. Figure C-C2.2 summarizes the results for the first benchmark problem and Figure C-C2

Degeneracy , If a single energy eigen value corresponds to more than one ei...

If a single energy eigen value corresponds to more than one eigen function then degeneracy is said to be exist and the number of wave function associated with a single value of ene

Strain energy release rate , The energy release rate, often denoted by G, i...

The energy release rate, often denoted by G, is the amount of energy per unit area that is supplied by the elastic energy in the body and loading system in creating a new fracture

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