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

Tool life, hi I''m doing research in tool life of solid carbide endmills ...

hi I''m doing research in tool life of solid carbide endmills and I was looking at your formulas. I was wondering if tell me or where I can find the data required for these formu

Composite materials - notation of axes, Notation for Body Axes The stan...

Notation for Body Axes The standard notation for the body axis sytem for aircraft dynamics. This sectionexplains the signi?cance of the term body axis and develops the non-line

Thermodynamics, What are the importance of engineering thermodynamics

What are the importance of engineering thermodynamics

Land surveying, Name and discuss the various uses of levelling in surveying...

Name and discuss the various uses of levelling in surveying

Water chemistry, distinguish between priming and foaming

distinguish between priming and foaming

Cash mangement, how to do a cash management project report ,including probl...

how to do a cash management project report ,including problems?example?

Plastic processing methods , Q. Write short note on following : ...

Q. Write short note on following : (i) Compression moulding of plastics. (ii) Injection moulding of plastics.

Draw a block diagram of the control loop, A speed control system has an amp...

A speed control system has an amplifier-motor-control element capable of maintaining a speed of 4000 rpm at the output shaft with no external load and an input of 8 mV to the ampli

Aircraft maintance, Explain different types of intakes of aircraft

Explain different types of intakes of aircraft

Guidance control system, Guidance Control system The control aspect...

Guidance Control system The control aspect of the guidance system is intended to stabilise the behaviour of the airframe. The fact that the guidance system will always h

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