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

Installation of propeller, INSTALLATION OF PROPELLER The method of inst...

INSTALLATION OF PROPELLER The method of installation will depend on the type of propeller, and all instructions detailed in the appropriate AMM should be carefully followed; th

Water haedness, hardness of bore well water is less than sea water

hardness of bore well water is less than sea water

Semi conductor devices, mobility and conductivity

mobility and conductivity

Accurate design of heat transfer systems, Hollow cylinders are useful build...

Hollow cylinders are useful building structures commonly used for both industrial and domestic purposes. Tanks, cars and some transport machineries are all applications of inner-in

Calculate the thermal conductivity, A steak which is 2.5cm thick is cooking...

A steak which is 2.5cm thick is cooking in a frying pan which has a 4mm thick base. The electric element used to heat the pan is turned to a level such that the bottom surface of t

Write a program to find the area under the curve y =, #questiWrite a progra...

#questiWrite a program to find the area under the curve y = f(x) between x = a and x = b, integrate y = f(x) between the limits of a and b. The area under a curve between two point

Define demat account?, Define Demat Account? What is the use of it? Dema...

Define Demat Account? What is the use of it? Demat indicates Dematerialization of reveal, in easy it is an consideration with which a individual can business in protection indus

Resolving power and rayleigh criterion of resolution, Q. Explain Rayleigh c...

Q. Explain Rayleigh criterion of resolution. What is meant by resolving power of grating? Ans. Resolving Power (i) Meaning of Resolution : The resolving power of

Syntax and variable matlab, Syntax and variable in matlab The MATLAB ap...

Syntax and variable in matlab The MATLAB application is designed around the MATLAB terminology. The easiest method to perform MATLAB value is to type it in the Control Screen,

LTE, LTE

LTE

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