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

Permeability of moulding sand, Permeability of Moulding Sand  is the proper...

Permeability of Moulding Sand  is the property of the sand, which permits the gases and steam to escape through the sand mould. For this purpose, the sand must be porous. Permeabil

Logic gate - nand gate, NAND Gate; When constructing a NAND gate using ...

NAND Gate; When constructing a NAND gate using transistors as the switching devices, the output often represents the 'inversion' of the "AND" gate. Figure 4 shows an example o

Fire risk assessment - fire protection engineering, What is a fire risk ass...

What is a fire risk assessment? Fire Risk Assessment (FRA) can mean different things to different people.  Here we will look at the understanding in the UK and the understandin

Explain the following spread spectrum techniques, Question : What is th...

Question : What is the ISM band and what is particular about this frequency band? Name two wireless technologies that make use of the ISM frequency band. a) Explain the foll

Fridge, R-134a is compressed in an adiabatic compressor from saturated vapo...

R-134a is compressed in an adiabatic compressor from saturated vapor at 100kPa to a final state at 1 MPa and 50 degrees Celcius. Before entering the compressor, the R-134a receive

Torsional divergence, Torsional Divergence Lets first try to explain a...

Torsional Divergence Lets first try to explain and interpret torsional divergence for the aerofoil structural model physically. An additional figure describing the mechanical s

Embedded system, I have an assignment of engine control unit (hardware desi...

I have an assignment of engine control unit (hardware design and programming) if you have an expert.....

Risk Management, discuss the values of risk analysis and how it can help in...

discuss the values of risk analysis and how it can help in decision making of project management under conditions of uncertainty

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd