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

Shelf list filing - library management, Shelf List Filing   Shelf list ...

Shelf List Filing   Shelf list reflects the arrangement of documents in the library. That is to say, the classificatory arrangement of the documents in a library can be seen th

Construction, notes on non tilting concrete drum mixers

notes on non tilting concrete drum mixers

Working of i.c. engine, WORKING OF I.C. ENGINE Basically there are 2 ty...

WORKING OF I.C. ENGINE Basically there are 2 types of internal combustion engines; the two stoke type and the 4-stroke type. A brief description of these is given below: 1.

..Evans Diagram, would you help with Evans diagram( draw and explain) for I...

would you help with Evans diagram( draw and explain) for Iron in seawater,and how variability of Oxygen concentration affect the electrode potential vs.current?

Digital Desing Trough VHDL, force and release constructs represents wich as...

force and release constructs represents wich assignments

Energy emission per capita, How do the numbers calculated in f. and g. comp...

How do the numbers calculated in f. and g. compare to the values in California and in the USA? The source of CO 2 emissions in Florida differ a lot from California. Transportat

Econometrics of Financial Derivatives, I''d like to receive a recommended b...

I''d like to receive a recommended book to be able to price fixed income derivatives when there is not already a martet to to calibrate models. I need to use econometrics book to e

Heat exchanger designing, How to design heat exchanger project from aromati...

How to design heat exchanger project from aromatics from shale gas transport phenomena, CHE 306

Mode iii interlaminar fracture toughness , Mode III Interlaminar Fracture T...

Mode III Interlaminar Fracture Toughness  The Mode III interlaminar fracture toughness of a composite can be measured using the split cantilever beam (SCB) geometry. Here, a c

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