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

Mass Transfer, construction and working of counter flow tray

construction and working of counter flow tray

Thermodynamics, show that heat and work are path functons

show that heat and work are path functons

Micheion interfermeter, Ask question #Minimum 1100 words accepted#

Ask question #Minimum 1100 words accepted#

Composite materials - approximate stability equatation, Most vehicles have ...

Most vehicles have the XZ plane as a plane of symmetry which results in D = 0 and F = 0. Further if the disturbance velociies are small then terms proportional to the square and pr

Fuel properties of aircraft, Fuel properties of Aircraft: EASE OF FLOW...

Fuel properties of Aircraft: EASE OF FLOW The ease of flow of a fuel is mainly a question of viscosity, but impurities such as ice, dust, wax, etc., may cause blockages in

Oscilloscope, connecting probe in CRO causes

connecting probe in CRO causes

Shift registers, Shift registers A register is a number of flip-flops a...

Shift registers A register is a number of flip-flops arranged in a circuit used for storing data. A shift register is one that is designed to move the data along the register.

Time base generator, notes of time base generator

notes of time base generator

Assignment #5, the date december 13, 2005. Air traffic controllers in a con...

the date december 13, 2005. Air traffic controllers in a control tower in

Sustainable energy processes, PEME5451/3451 SUSTAINABLE ENERGY PROCESSES As...

PEME5451/3451 SUSTAINABLE ENERGY PROCESSES Assignment 5: Transport fuels VLE submission deadline is Friday 24th February PART 1: (worth 40%, all parts marked equally) 1. Using the

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