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

Apu engine, APU Engine APU engines usually consist of a centrifugal com...

APU Engine APU engines usually consist of a centrifugal compressor and a radial turbine however, axial compressors and turbines may be added or used in their own right. Centrif

Principles of jet propulsion, Principles of Jet Propulsion: Newton 's...

Principles of Jet Propulsion: Newton 's Laws of Motion. To understand the basic principles of jet propulsion it is necessary to understand the practical application of Sir I

Auxiliary power unit oil system, Auxiliary power unit oil System: A sum...

Auxiliary power unit oil System: A sump at the bottom of the gearbox collects the returning oil, in some APU's the rear face of the sump is finned and let into the intake plenu

Assembly buildings - common fault, Assembly buildings - fire risk assessmen...

Assembly buildings - fire risk assessment: Common faults found in assembly buildings are: Combustible items left in protected routes or bedroom corridors Locked exi

Define the term technology, Question 1 Define the term technology. Write a...

Question 1 Define the term technology. Write a effective short note on evolution and growth of technology Question 2 Citing an example, state and explain the reasons that com

Physics, what is electrical transmission and electromagnetic radiation in t...

what is electrical transmission and electromagnetic radiation in the form of energy transfer?

Financial engeneering, “A swap bank has to entail certain risks which are i...

“A swap bank has to entail certain risks which are inherent to the swap business and are interrelated” Explain the risks involves in swap business.

Bajaj electronics, HOW WOULD YOU JUDGE THE POTENTIAL PROFIT OF BAJAJ ELECTR...

HOW WOULD YOU JUDGE THE POTENTIAL PROFIT OF BAJAJ ELECTRONICS ON THE FIRST YEAR OF SALES TO BOOTH PLASTICS AND GIVE YOUR VIEWS TO INCREASE THE PROFIT?

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