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

Find voltage gain of junction field effect transistt, find voltage gain of ...

find voltage gain of junction field effect transistor

#MATERIAL ENGINEERING, HEAT TREATMENT PROCESS

HEAT TREATMENT PROCESS

Various cementing materials, The various cementing materials are classified...

The various cementing materials are classified as follows. a) Argillaceous cementing materials b) Calcareous cementing materials c) Carbonaceous cementing materials Argillaceous Ma

Thermodynamics, original temp. of plate is 25 degree c.when put in burnace ...

original temp. of plate is 25 degree c.when put in burnace its upper part is 250 c and lower is 100 and mass is 56kg.find out heat transfer

Swell Factors, The effect of swell factors on volumes

The effect of swell factors on volumes

Static electricity in aircraft, Static electricity in aircraft: As ment...

Static electricity in aircraft: As mentioned earlier, the effects of static electricity are of considerable importance in the design of aircraft and aircraft equipment. An air

Bragg''s law and calculation of wavelength, Q. Explain Bragg's law. A mon...

Q. Explain Bragg's law. A monochromatic X-ray is incident on a crystal. By rotation the crystal, two successive reflections are obtained at angles of 10.0° and 23.0°. the inter p

Present worth equivalence in economical engineering, Present Worth equivale...

Present Worth equivalence: Since we have developed the relationship to find a future value F given a present value P, we can easily derive the formula to find a (P|F, i, n), w

Shift registers, Shift registers A register is a number of flip-flops a...

Shift registers A register is a number of flip-flops arranged in a circuit used for storing data. A shift register is one that is designed to move the data along the register.

Technical drawing, career aspiration as a determinant to senior secondary ...

career aspiration as a determinant to senior secondary school students performance in Technical drawing.

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