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

Means of escape - place of safety, Means of escape - place of safety: ...

Means of escape - place of safety: The means of escape in a building are often supplemented by a fire warning system that may or may not include automatic detection, depending

Enterprise resourse planning, explain data model with example?

explain data model with example?

Poultry numericals, design cage type poultry house for 1000 lying birds als...

design cage type poultry house for 1000 lying birds also specify the equipments for feeding,watering,lighting and protecting birds.

Cash flow diagrams, Cash Flow Diagrams We will use a cash flow approac...

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

International financial management , explain the funcyions and structure of...

explain the funcyions and structure of foreign exchange market.

Flight control - state feedback, If all states are measured by appropriate ...

If all states are measured by appropriate sensors and interfaced to the flight control computer then allthe states may be fed back and there is no restriction on the choice of K. S

Problem, the royal canadian hillies plan to locate a brandy carryout in the...

the royal canadian hillies plan to locate a brandy carryout in the Yukan.A number of saint Bernard dogs ,trained by sergeant preston ,will be used to rescue lost tourists looking f

Mr tiy, Hi, do u help with HYSYS assignment ?

Hi, do u help with HYSYS assignment ?

Aircraft structure, list of components

list of components

Laws of chemical combination, FeCl+NaOH

FeCl+NaOH

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