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

B.tech, limitations of nernsts law

limitations of nernsts law

Design, 10 vertical examples

10 vertical examples

Coupling and cohesion, advantages and disadvantages of coupling and cohesio...

advantages and disadvantages of coupling and cohesion

Pattern practices, Pattern Practices : A pattern may be defined as a repli...

Pattern Practices : A pattern may be defined as a replica or fascimile model of the desired casting which, when packed or embedded in a appropriate moulding material, creates a ca

Pressure relief valve - aircraft engine, PRESSURE RELIEF VALVE The pres...

PRESSURE RELIEF VALVE The pressure relief valve shown in the figure. controls the oil pressure at the pre-set value demanded by the system. The valve is normally integral with

Ewing’s molecular theory of magnetism, Ewing’s molecular theory of magnetis...

Ewing’s molecular theory of magnetism Every molecule of a magnetic substance behaves as a tiny magnet called molecular magnet. In an unmagnetized state the molecular m

X rays., how x rays are produced?

how x rays are produced?

Structural Engineering, Hi, I need a help in structural engineering theis ...

Hi, I need a help in structural engineering theis work

Engine torque, ENGINE TORQUE It is the force of rotating action about t...

ENGINE TORQUE It is the force of rotating action about the crankshaft axis at any given instant of time. It is given by,

Aeroengines - comparison with analytical solution, The figure below compare...

The figure below compares the discrete solution with the exact analytical solution The error is largest at the right boundary where it is equal to solution. The error is largest at

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