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

Vibrating beam accelerometer, Vibrating beam accelerometer The electrod...

Vibrating beam accelerometer The electrodes are driven by a high frequency voltage (1 MHz). The displacement is measured using a phase detector from the change of capacitance b

Extended input facilities, Extended input facilities Another instance w...

Extended input facilities Another instance where multiple inputs to a single gate operation can occur is with certain types of gate elements that have an 'EXTENDED INPUT' facil

Thermo electric thermometer, how thermoelecteric thermometer is contructed ...

how thermoelecteric thermometer is contructed and how it working

Decision table software engineering, Write a decision table that specifies ...

Write a decision table that specifies the rules for the game of checkers.

Case1, Flifla sells tomatoes every day in Suk al Marqazi, the downtown frui...

Flifla sells tomatoes every day in Suk al Marqazi, the downtown fruit and vegetable market. He finds that he can order tomatoes in crates of 25 kg and he is able to stock a maximum

Miller sweep generator, I want circuit diagram of miller sweep generator wi...

I want circuit diagram of miller sweep generator with components using two transistor bc547

Apu starting sequence in aircraft , Apu starting sequence in aircraft : ...

Apu starting sequence in aircraft : In figure the APU control unit receives its power from the aircraft battery. By moving the APU switch to ‘ON', power is provided to the i

Drafting, what employment options are available in drafting

what employment options are available in drafting

Hydro plant, various components used in plants

various components used in plants

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