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

Introduction to Corporate Finance, Calculatethe tax disadvantage to organiz...

Calculatethe tax disadvantage to organizing a U.S. business today, after passage of the Jobs and growth Tax relief reconciliation act of 2003, as a corporation versus a partnership

Signal conditioning amplifier, Signal conditioning amplifier The primar...

Signal conditioning amplifier The primary function of the signal conditioning amplifier is to match the output signal range of the transducer to the input signal range of the a

Circuit, I am looking for a circuit similar to a schmitt trigger which use ...

I am looking for a circuit similar to a schmitt trigger which use a varying capacitive input and provided a varying frequency output.

Wire drawing, Wire Drawing involves pulling the metal through a die by mea...

Wire Drawing involves pulling the metal through a die by means of tensile force applied to the exit side of the die. A typical wire drawing operation is shown in fig.

Nominal rate of interest, the real risk free rate of interest is 3 percent....

the real risk free rate of interest is 3 percent. Inflation is expected to be 3 percent for 2 years. What is nominal rate of interest for the 2 years bond?

High level design for an SME network, my course is master in telecommunicat...

my course is master in telecommunication and i need it today is it possible?

Land serveying, list out the errors in lenier measurment

list out the errors in lenier measurment

Trusses, Analysis of truste,2D truss analysis using method of joint(cantile...

Analysis of truste,2D truss analysis using method of joint(cantilever & simply support)?

Telecommunication Networks., Hi there, I''ve sent an email to you guys abou...

Hi there, I''ve sent an email to you guys about Telecommunication Networks assignment and I haven''t yet received any reply. Pleases let me know if you have received it. Thank yo

Aeroengines - fluent , Installing FLUENT on a MWS machine Fluent was origi...

Installing FLUENT on a MWS machine Fluent was originally developed on unix and graphical output was provided by calls to the X Windows graphics system For this reason provided by c

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