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

SOLID SEMICONDUCTOR DEVICES, VARIATION OF ENERGY BAND GAP WITH ALLOY COMPOS...

VARIATION OF ENERGY BAND GAP WITH ALLOY COMPOSITION

An essay on power train, Interior noise is basically airborne or structure-...

Interior noise is basically airborne or structure-borne. The excitation sources of vibratation and noise from engines can be divided as mechanical, combustion, and flow sources.

Blow hole and pin hole porosity, Difference between Blow hole and pin hol...

Difference between Blow hole and pin hole porosity Blow hole : They appear as cavities in a casting. When they are visible on the upper surface of the castings, th

Engine fires, Engine fires: There are two main types of engine fire tha...

Engine fires: There are two main types of engine fire that can occur when running gas turbine engines and they are dealt with in different ways. 1. Fire in the engine nacel

Fire alarm systems - look for when inspecting, Fire alarm systems: Fir...

Fire alarm systems: Fire alarm systems can be very complex and it is usually not possible for an enforcing officer to check all the cabling, the components, the software and t

Bio physiology Matlab Simulink Models, Review the lecture on BB document “P...

Review the lecture on BB document “Pharmacology …..” slide 6 where the solution for a 1st order system was demonstrated. The generic system is A(X)?(K1)?B(Y)?(K1’)?C(Z) 1. Cr

FI560, Each student will, as part of the course requirements, submit a rese...

Each student will, as part of the course requirements, submit a research paper on an individual stock. You are allowed to select any stock that trades on the New York Stock Exchang

Probability distribution in matlab, I would like to ask in detail. How can ...

I would like to ask in detail. How can I attach the files?

HELP!!, HELP IN ELECTRONIC...I AM DOING ELECTRONIC ENG. ... GUIDE ME THE WA...

HELP IN ELECTRONIC...I AM DOING ELECTRONIC ENG. ... GUIDE ME THE WAY...

What is crossover rate?, What is crossover rate? They are produced by tw...

What is crossover rate? They are produced by two different but identical tasks. The cross-over amount is the points at which the two tasks obtain the same net provide value. Wit

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