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

Finance.., hi, I need to do this question but I couldn''t capable to do i...

hi, I need to do this question but I couldn''t capable to do it. so can you tell me how much money I can give you to be done? How would you value the price of a Microfinance I

Survey, What''s the principles of surveying?

What''s the principles of surveying?

Matlab, Provided a 1D array of integers, find all combinations of 3 values ...

Provided a 1D array of integers, find all combinations of 3 values from this set such that: a+b+c=0 For example, if one were provided with the set [3 1 3 -4 -6], the resulting answ

Petroleum Production.., 1. . Using the graph of pore/fracture pressure for ...

1. . Using the graph of pore/fracture pressure for the Holly Field propose a casing scheme for the well using the graphical approach. Discuss the suitability of the selected casing

Capacitive transducers, Capacitive transducers Consider a capacitor con...

Capacitive transducers Consider a capacitor consisting of two parallel conducting plates with an insulator in between. Its capictance is C = ε 0 ε r  A/d where ε

Assignment help, need help with energy engineering assignment,environment t...

need help with energy engineering assignment,environment technology assignment,mechanical assignment

Linear lateral dynamics, Linear lateral dynamics The second order (two ...

Linear lateral dynamics The second order (two degree of freedom) Dutch-Roll approximation is an approximation to the abovefourth order system for the Dutch Roll dynamics. A jus

Medical Optics, what are wavefronts and how are they useful in the field o...

what are wavefronts and how are they useful in the field of optics and medicine?

Mpmc, .What is MASM? Explain its features

.What is MASM? Explain its features

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