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

Vlsi, how to find out the number of select lines while construcing a mux or...

how to find out the number of select lines while construcing a mux or a demux logic diagram?

Strain energy release rate , The energy release rate, often denoted by G, i...

The energy release rate, often denoted by G, is the amount of energy per unit area that is supplied by the elastic energy in the body and loading system in creating a new fracture

Wien bridge oscillator , analysis the wien bridge oscillator practical?

analysis the wien bridge oscillator practical?

Introduction to Corporate Finance, Calculatethe tax disadvantage to organiz...

Calculatethe tax disadvantage to organizing a U.S. business today, after passage of the Jobs and growth Tax relief reconciliation act of 2003, as a corporation versus a partnership

Extended input facilities, Extended input facilities Another instance w...

Extended input facilities Another instance where multiple inputs to a single gate operation can occur is with certain types of gate elements that have an 'EXTENDED INPUT' facil

BIPOLAR AND UNIPOLAR DIGITAL ICs, EXPLAIN THE WORKING OF BASIC N-CHANNEL M...

EXPLAIN THE WORKING OF BASIC N-CHANNEL MOSFET SWITCH

Prashant agrawal, system log

system log

Request for quote, I need the following corporate finance problems complete...

I need the following corporate finance problems completed in an excel spreadsheet. How much would this cost? 1) An investment project requires a net investment of $100,000. The pr

Fuel distribution in aircraft design, Fuel Distribution During operatio...

Fuel Distribution During operation, fuel flows from the aircraft fuel tank to the fuel-pump boost-stage inlet. The pressurised fuel from the boost stage of the engine-driven fu

QMETER, Explain how a Q-meter can be used to measure resistance inductance ...

Explain how a Q-meter can be used to measure resistance inductance and capacitance??

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