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

Short term instruments, how short term instrumentr are measured

how short term instrumentr are measured

Principles of sprinkler systems-fire safety engineering, Principles of Spri...

Principles of Sprinkler Systems-Fire safety Engineering Sprinkler systems may be installed in a building to achieve a number of different objectives. Very often the primary r

sweep effects, In the previous discussion, we investigated the static aero...

In the previous discussion, we investigated the static aeroelastic behaviour of straight (unswept) wings. These wings are characterised by an effective decoupling of wing bending a

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

Calculate the relative load of mobile broadband subscribers, Question: ...

Question: (a) A mobile operator wants to weigh and allocate cost towards mobile broadband subscribers with mobile broadband at 80% of the traffic and 15% of the subscribers. H

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

Working of bootstrap sweep circuit?

Density correction factor, superheated steam flow measurement please provid...

superheated steam flow measurement please provide formula used for density correction factor

Line communication, what is two motion selector

what is two motion selector

Tvm, hOW LONG WILL IT TAKE AN AMOUNT TO DOUBLE IF THE INTEREST RATE IS 7% P...

hOW LONG WILL IT TAKE AN AMOUNT TO DOUBLE IF THE INTEREST RATE IS 7% P.A. COMPOUNDED ANNUALLY

project on gas leakage detection, can any one please help with virtual cir...

can any one please help with virtual circuit simulation

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