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

Ratio analysis, calculate inventory turnover ratio, when only given current...

calculate inventory turnover ratio, when only given current assets $100,000, current liabilities, $25,000 sales $200,000 and quick ratio=1.5

Co-ordination number, Q.  Define co-ordination number. Ans.CO-ORDINAT...

Q.  Define co-ordination number. Ans.CO-ORDINATION NUMBER: The number of atoms which are directly surrounding a given atom is known as coordination number. Number of atoms w

Miller sweep generator, I want circuit diagram of miller sweep generator wi...

I want circuit diagram of miller sweep generator with components using two transistor bc547

Signal and system, if the response of a signal is h(t) then the cascading o...

if the response of a signal is h(t) then the cascading of two responses h1(t) and h2(t) is given by

#title.project, what type of projects are take place in the chemical engin...

what type of projects are take place in the chemical engineering

Engine indication systems in aircraft, Engine indication systems in Aircraf...

Engine indication systems in Aircraft: Engine indications are very important to the crew of a powered aircraft, as they indicate one of the primary parameters needed for flight

Flight control -state estimators , State-estimators for continuous time lin...

State-estimators for continuous time linear systems The state space state and output equations of continuous time linear systems is of the form? x = Ax + Bu + v and y

Discuss the heuristic search as applied to an and/or graph, Question 1 Wha...

Question 1 What is Artificial Intelligence? Discuss the two class of approaches followed for AI Question 2 Discuss the heuristic search as applied to an AND/OR Graph Ques

Corporate, Need help with a timed exam

Need help with a timed exam

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