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

Coupling and cohesion, advantages and disadvantages of coupling and cohesio...

advantages and disadvantages of coupling and cohesion

Classification of plastic, Q. Discuss the classifications of plastics.     ...

Q. Discuss the classifications of plastics.                                                      OR      Discuss the general properties and classification of plastics.

Help please, Judy Johnson is choosing between investing in two Treasury sec...

Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of $1,000. One is a Treasury note paying an annual coupon of 5.

Avionic systems design- stability derivatives, The idea of stability deriva...

The idea of stability derivatives is to approximate the general functional relationship between any force ormoment variable and the dynamic or control variables as a Taylor series

FSE, A W12x40 beam is heated to 760°C. Answer the following questions. Wh...

A W12x40 beam is heated to 760°C. Answer the following questions. What is the W/D factor for sprayed protection? What is the W/D factor for box type protection? What is the spe

Numerical method, find the newton raphson iterative formula for a reciproca...

find the newton raphson iterative formula for a reciprocal of a number N and hence find the value of 1/23.correct to 5 place of decimal

syed, risks involved in moving from a project-centric mode to a mix of pro...

risks involved in moving from a project-centric mode to a mix of projects and

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