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

Problem Set, 1) An investment project requires a net investment of $100,000...

1) An investment project requires a net investment of $100,000. The project is expected to generate annual net cash flows of $28,000 for the next 5 years. The firm''''''''s cost of

Full-authority digital electronic control, Full-authority digital electroni...

Full-authority digital electronic control: The supervisory control was a step toward the full-authority, fully redundant EEC. It controls all engine functions and eliminates th

The ideal operational amplifier, THE IDEAL OPERATIONAL AMPLIFIER Althou...

THE IDEAL OPERATIONAL AMPLIFIER Although the characteristics of an ideal operational amplifier are unattainable, modern integrated circuit types can provide an extremely close

Design, 10 vertical examples

10 vertical examples

Universal shunt, why aryton shunt called universal shunt?

why aryton shunt called universal shunt?

Method of calculating the thrust forces-engine performance, Method of calcu...

Method of calculating the thrust forces: The thrust forces or gas loads can be calculated for the engine, or for any flow section of the engine, provided that the areas, pressu

Heat treatment., Why low carbon steel can not be quench hardened?

Why low carbon steel can not be quench hardened?

Design a pavilion , i need somone to design a pavilion for me

i need somone to design a pavilion for me

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