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

Fire alarm systems - look for when inspecting, Fire alarm systems: Fir...

Fire alarm systems: Fire alarm systems can be very complex and it is usually not possible for an enforcing officer to check all the cabling, the components, the software and t

Totipotency, Why do only plant cell have totipotency?

Why do only plant cell have totipotency?

Case study, dhpl is the firm situated in faridabad,its ending year on 31st ...

dhpl is the firm situated in faridabad,its ending year on 31st march 2009 ,1000million asset base rs.650 million & the net profit of the company was 76 milloin the managmnt of the

Electronic devices, give a criticalanalysis of a zener diodedata with suita...

give a criticalanalysis of a zener diodedata with suitable chracteristicsand applications

Rotating Equipment, #What are the types of pumps used in oil industry? How...

#What are the types of pumps used in oil industry? How to perform fault finding report?

MIMO, I need some help

I need some help

Aircraft maintance, Explain different types of intakes of aircraft

Explain different types of intakes of aircraft

Trading , how to find the net profit of given data

how to find the net profit of given data

Plane transmission diffraction grating, A diffraction grating is an optical...

A diffraction grating is an optical element that diffracts light into its constituent wavelength (colors). It is an excellent device used in laboratory to study the spectra. Co

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