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

Terrestrial telescope., how to making terrestrial tele scope an how its wor...

how to making terrestrial tele scope an how its work and formulation of terrestrial telescope

Clippers, WHAT IS THE DIAGRAM OF TWO LEVEL CLIPPER WITHOUT REFERENCE AND EX...

WHAT IS THE DIAGRAM OF TWO LEVEL CLIPPER WITHOUT REFERENCE AND EXPLAIN

Instruction set, compare zero- one- two- and three-address machines by writ...

compare zero- one- two- and three-address machines by writing programs to compute X=(A+B*C)/(D-E*F)

Budget and determining, In Corporate finance, Experts engaged in this occup...

In Corporate finance, Experts engaged in this occupation have the liability to increase the organization's revenue, shareholder's money, investment spending budget and determining

Casting alloys, Casting Alloys are - (i) Permanent moulds...

Casting Alloys are - (i) Permanent moulds are commonly used for the casting of grey iron, aluminum alloys and magnesium alloys. (ii) Slush Casting

Calculate the maximum amount of recoverable resource, A 30m deep quarry pit...

A 30m deep quarry pit is to be constructed in a jointed basalt rock mass. The quarry management wants to maximise the side wall inclination to 70° for economic reasons. The geologi

Static electricity in aircraft, Static electricity in aircraft: As ment...

Static electricity in aircraft: As mentioned earlier, the effects of static electricity are of considerable importance in the design of aircraft and aircraft equipment. An air

Sustainability concepts associated with ubiquitous computing, Question: ...

Question: (a) Spreading the spectrum for signal transmission helps alleviate the narrow band interference problem. What is narrow band interference? State and describe 2 differ

Heat and mass transfer, Water enters a smooth thin-walled tube of 1 inch di...

Water enters a smooth thin-walled tube of 1 inch diameter at 50F and leaves at 150F. Heat is supplied to the water by condensing steam on the surface of the tube at a constant temp

The impact and post-impact behaviour of composites , The Impact and Post-im...

The Impact and Post-impact Behaviour of Composites Many early studies involved doing Charpy tests on small notched samples. This is a destructive test of impact resistance, co

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