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

Lightweight concrete ., type of materials used in lightweight concrete

type of materials used in lightweight concrete

Principles of jet propulsion, Principles of Jet Propulsion: Newton 's...

Principles of Jet Propulsion: Newton 's Laws of Motion. To understand the basic principles of jet propulsion it is necessary to understand the practical application of Sir I

Inversion circle, what do you understand by inversion circle?

what do you understand by inversion circle?

Electronics, explain compensated semiconductors

explain compensated semiconductors

Iosipescu shear test, A second way to determine the shear modulus is to use...

A second way to determine the shear modulus is to use the Isopescu shear test. The sample is placed in a jig and loaded as shown. Under load, a region of pure shear exists

Computer proggraming c++, an algorithm 1! +2! +3! +n!

an algorithm 1! +2! +3! +n!

Structural Engineering, Hi, I need a help in structural engineering theis ...

Hi, I need a help in structural engineering theis work

Crystal structure, how can we determine the crystal structure of material b...

how can we determine the crystal structure of material by having interplanar spacing d?

Working of bootstrap sweep circuit, Working of bootstrap sweep circuit?

Working of bootstrap sweep circuit?

Engine protection devices - aircraft engine, Engine protection devices : ...

Engine protection devices : Described below are typical protection devices that will override any excessive demands made on the engine by the pilot or by the control units.

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