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

Variable interest rate, What is Variable Interest Rate? Interest rates whic...

What is Variable Interest Rate? Interest rates which is offered by banks or financial institutions on loans or deposits which are liable to change according to circumstances. For e

microprocessors, how can you access the general purpose registers of Micro...

how can you access the general purpose registers of Microprocessor in windows XP/2000/98...

Abrasive grit, Abrasive Grit This method of compressor cleaning involve...

Abrasive Grit This method of compressor cleaning involves injecting an abrasive grit into the engine at selected power settings ( Figure 21.30.)grit used may be ground walnut s

Homework, What are the no-arbitrage lower bound, and the no-arbitrage upper...

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread C(k1) - C(k2) ?

Lock Clip Came out from Rear Brake Drum (Backplate) , A type of brake used ...

A type of brake used to keep the vehicle from rolling when it is parked. The standard Parking brake locks the rear wheels to keep the car from moving. Parking brake cable is fixed

Mine Drainage Task, The purpose of this project is to design a pipeline and...

The purpose of this project is to design a pipeline and pumping system to dewater a mine. The production level is 500m below surface. Ore is fed through crusher chambers to the tra

Communication, Can u provide some information about simple wireless transmi...

Can u provide some information about simple wireless transmitter and receiver.

DSP, bit reversed process 10 point dft

bit reversed process 10 point dft

Wireless sensor networks, can we construct a body area sensor network in ma...

can we construct a body area sensor network in matlab as in ns-2.

Math modelling, As an engineering student, the ministry of energy and miner...

As an engineering student, the ministry of energy and minerals has tasked you to help them model equation(s) that can estimate the amount of crude oil in a reservoir. The governmen

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