Payback period method, finance, Other Engineering

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

Coil, explain coil ?

explain coil ?

Traffic management, (a) Discuss the requirements, specifications and specia...

(a) Discuss the requirements, specifications and special requirements for the design of arterial road networks and residential area street networks in a developing suburban region

LTE, WHATIS LTE CODING TECHNIQUES USE FOR MOBILE SYSTEM

WHATIS LTE CODING TECHNIQUES USE FOR MOBILE SYSTEM

Finance, Derive the functional relationship between the no-arbitrage values...

Derive the functional relationship between the no-arbitrage values of the two vertical spreads.

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

how thermoelecteric thermometer is contructed and how it working

AERONAUTIC PROJECT, hello sir, i am a FINAL YEAR B.E STUDENT...NOW i am in ...

hello sir, i am a FINAL YEAR B.E STUDENT...NOW i am in the stage of doing a PROJECT...please give me some ideas in the field of AERODYNAMICS for doing PROJECT..

Physical chemistry, can you answer some problem from physical chemistry wit...

can you answer some problem from physical chemistry with a detailed approach why and how one should choose the steps in solving them.These are just random question that I have no c

patch antenna, how to make patch antenna for wifi applicatoi

how to make patch antenna for wifi applicatoin

Define demat account?, Define Demat Account? What is the use of it? Dema...

Define Demat Account? What is the use of it? Demat indicates Dematerialization of reveal, in easy it is an consideration with which a individual can business in protection indus

Plumbing, what are the most short forms given to materials in plumbing

what are the most short forms given to materials in plumbing

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd