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

Derivative securities, Let C (K) denote a European vanilla Call option with...

Let C (K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy K1 What are the no-ar

Sintering, Q. What is sintering ? Explain the stages of sintering. An...

Q. What is sintering ? Explain the stages of sintering. Ans. The operation of heating a green compact to an elevated temperature is known as sintering. It is a process by

Thermodynamics (heat and work), #questi1.) A house has 0.5 cm thick single-...

#questi1.) A house has 0.5 cm thick single-pane glass window 2m by 1.5m .The temperature is 20 degrees Celsius and the outside temperature is -20 degrees Celsius .If there is an ai

Thermal efficiency, For ramjets, turbojets and turbofans

For ramjets, turbojets and turbofans

Engine fires, Engine fires: There are two main types of engine fire tha...

Engine fires: There are two main types of engine fire that can occur when running gas turbine engines and they are dealt with in different ways. 1. Fire in the engine nacel

Strain energy release rate , The energy release rate, often denoted by G, i...

The energy release rate, often denoted by G, is the amount of energy per unit area that is supplied by the elastic energy in the body and loading system in creating a new fracture

Dischage rate, stuck on a project that requires 5 outputs with 6 inputs and...

stuck on a project that requires 5 outputs with 6 inputs and all formulas

Measurements of economic worth, Measurements of Economic Worth There a...

Measurements of Economic Worth There are several methods of economic worth used to compare alternatives. If you decide to use present worth analysis, then you have indicate a

Propeller construction, PROPELLER CONSTRUCTION METAL PROPELLERS Mo...

PROPELLER CONSTRUCTION METAL PROPELLERS Most metal propellers have forged alloy blades protected from corrosion by anodising and often further protected by polyurethane en

Explain the concept of postmodernism in detail, Question 1 Write a long no...

Question 1 Write a long note on Professional Cultures in a ‘Golden Age' Question 2 Write a long note on the Global and Local Interrelationship Question 3 Write a long no

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