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

Propeller control in aircraft engine, Propeller control : CONSTANT SPE...

Propeller control : CONSTANT SPEED UNIT: In the normal flight range, the main control of the propeller is exercised by the propeller control unit (PCU). MANUAL AND AU

Directional solidification, Q. What do you understand by directional solidi...

Q. What do you understand by directional solidification? What is gating system? Describe, giving sketches, various types of gates. What are the advantages and disadvantages of pres

Alternative escape routes - means of escape, Alternative escape routes: ...

Alternative escape routes: Does everyone have access to the alternative routes or do some people have no choice about which way they go? Are all the escape routes

Technical Paper, I need help summarizing a technical paper.

I need help summarizing a technical paper.

Composite materials - notation of axes, Notation for Body Axes The stan...

Notation for Body Axes The standard notation for the body axis sytem for aircraft dynamics. This sectionexplains the signi?cance of the term body axis and develops the non-line

Fibre optics communications, explain the fibre optic communication system w...

explain the fibre optic communication system with block diagram

Capital budgeting, explain the objective of capital budgeting

explain the objective of capital budgeting

Ic Packages, Ic Packages: Like transistors and other types of solid sta...

Ic Packages: Like transistors and other types of solid state components, IC's are mounted in packages, which protect them from moisture, dust and other types of contaminations.

Engine vibration indication, Engine Vibration Indication The engine vib...

Engine Vibration Indication The engine vibration monitoring (EVM) system shows the out of balance force for the N1 and N2 shaft. High engine vibration shows engine damage or

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