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

Match plate patterns, Match plate patterns are used where a rapid producti...

Match plate patterns are used where a rapid production of small and accurate castings is desired on a large scale. These patterns find a great favour in machine moulding. Their co

Difference between soldering, Q. What are the differences between soldering...

Q. What are the differences between soldering, brazing and welding? Ans. S.No. Welding Soldering Brazing

Engineering Economy, I need the answers of these three problems. 1. How muc...

I need the answers of these three problems. 1. How much money would be in a savings count that started with a deposit of $2,000 in year 1 with each succeeding amount increasing by

Advantages of cold working over hot working, List the advantages of cold wo...

List the advantages of cold working over hot working?

NIRAN, Why spiral model is called meta model?

Why spiral model is called meta model?

Compacting or briquetting, The operation of heating a green compact to an e...

The operation of heating a green compact to an elevated temperature is known as sintering. It is a process by which solid bodies are bonded by atomic forces. It is carried out belo

Vlsi, Working of bi- CMOS invertor in vlsi

Working of bi- CMOS invertor in vlsi

Aircraft radio installation licence and approval, AIRCRAFT RADIO INSTALLATI...

AIRCRAFT RADIO INSTALLATION (STATION) LICENCE AND APPROVAL 1. A radio installation licence is issued by the Department of Trade and Industry Radio Communications Agency , fo

Limited travel distances - means of escape, Limited travel distances - mean...

Limited travel distances - means of escape: Are travel distances within the maximum allowable distances published in the guidance? Is there good visibility in the

What is the difference between journal entry & ledger?, What is the differe...

What is the difference between JOURNAL ENTRY & LEDGER? Journal is a journal of unique entrance. It is a journal where all the dealings of organization have been registered rela

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