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

. CFD, HOW TO MAKE ROTATING FRAME

HOW TO MAKE ROTATING FRAME

Propeller spinners, PROPELLER SPINNERS All modern propeller-driven aero...

PROPELLER SPINNERS All modern propeller-driven aeroplanes have spinners over their propeller hubs. These spinners have the dual aerodynamic function of streamlining the engine

Environmental engineering, compare conventional lagoon,aerated lagoon and a...

compare conventional lagoon,aerated lagoon and activated sludge process,including process flow diagrams and hydraulic retention timesquestion #Minimum 100 words accepted#

Guides for the fire risk assessment, Guides for the fire risk assessment: ...

Guides for the fire risk assessment: In the UK, the Government produce guides for the FRA process that are free to download.   There are a range of guides covering  the ran

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

High level design for an SME network, my course is master in telecommunicat...

my course is master in telecommunication and i need it today is it possible?

Pitch lock mechanism, PITCH LOCK MECHANISM The pitch lock mechanism is ...

PITCH LOCK MECHANISM The pitch lock mechanism is necessary to cater for the two fine pitch position of 'flight fine pitch' and 'ground fine pitch'. It acts as a safety device

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