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

KK-3 system coding, how to write code for any particle shape using KK-3 sys...

how to write code for any particle shape using KK-3 system coding in grope technology

Calculate pi for infinite series, Write a program to calculate from the i...

Write a program to calculate from the infinite series: Print a table showing the value of approximated by one term, two terms, three terms, four terms, and so on from th

Materials in design, I have assignments to due and I''m wondering if you co...

I have assignments to due and I''m wondering if you could do it for me

Gating system design, A gating system is usually made up of :           ...

A gating system is usually made up of :                         (i) Pouring basin                                          (ii) Sprue well                         (iii) Ru

Continuity equation - ducts and nozzles, Continuity equation If we co...

Continuity equation If we consider the machine to be an open-ended duct, we find that the mass flow per second will depend on the density of the fluid and the volume flowing

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

Water chemistry, distinguish between priming and foaming

distinguish between priming and foaming

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