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

Presintering, Presintering is an operation in which the powder metallurgy ...

Presintering is an operation in which the powder metallurgy components after compaction are heated for a short time to a temperature considerably below the final sintering tempera

Inheritance and polymorphism, The objective of this programming assignment ...

The objective of this programming assignment is to experience the use of inheritance in Java and to see how polymorphism works with inheritance in Java. The assignment involves wri

Applications and demerits of electron microscope, Applications - (1)   ...

Applications - (1)          Electron microscopy is widely used in metallurgy, biology, material science, physics, chemistry, and many other technological fields. The developmen

Refrigeration, can liquid reciever determine amount f refrigerant charged i...

can liquid reciever determine amount f refrigerant charged into the system

Sand casting, Sand castings are porous enough and, therefore, cannot be use...

Sand castings are porous enough and, therefore, cannot be used for pressure sight vessels. Structure obtained by sand casting is loose and hence not stranger than wrought products.

Pressure filter - aircraft maintenance , PRESSURE FILTER The pressure o...

PRESSURE FILTER The pressure oil filter housing contains a wire-wound or mesh, Paper or felt elements and incorporates a by-pass valve. The filter housing can be drained inde

Fire safety management for commercial buildings, fire safety management for...

fire safety management for Commercial buildings: Commercial buildings where all the occupants are familiar with the building we also need to see evidence of satisfactory fire

Corporate, Need help with a timed exam

Need help with a timed exam

What is tact?, What is Tact? Tact is nothing but a situational score ene...

What is Tact? Tact is nothing but a situational score energy. Once I had gone to a Govt workplace for getting documentation. There I was informed to provide unwanted fee more th

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