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

Engineering machnics, a part of machine has a reciprocating motion which is...

a part of machine has a reciprocating motion which is simple harmonic making 200 complete oscillations in a minute.the part weight 45 N.determine the accelerating force upon it

Basic electronics, A car battery is of 12 v. eight dry cells of 1.5 v each ...

A car battery is of 12 v. eight dry cells of 1.5 v each connected in series can give 12 v. but such cells are not used in starting a car. why?

Blade twist - aircraft engine, BLADE TWIST: Rotational velocity and its...

BLADE TWIST: Rotational velocity and its effect on the Angle of Attack depends on the radius of the blade element in question. A blade element near the blade root (hub) will h

Elastic and plastic deformation, Q. Define elastic and plastic deformation ...

Q. Define elastic and plastic deformation and differentiate between them. Ans. Elastic deformation : Elastic deformation is that part of the deformed material, when the

Linear integrated circuit, ac analysis for dual input unbalanced output dif...

ac analysis for dual input unbalanced output differntial amplifier

Local attraction, how can we find local attraction correction?

how can we find local attraction correction?

Ubiquitous networks, Ubiquitous network applications are generally designed...

Ubiquitous network applications are generally designed for a whole network. This notion should be reflected in the way a network is programmed. We believe that providing abstractio

Wing design for a sports glider , Wing design for a sports glider  Th...

Wing design for a sports glider  The justification of the aerofoil selection with appropriate data, based on tunnel work or computational analysis.  Sizing of the wing in

..introduction to networking, Explain bus topology and peer to peer network...

Explain bus topology and peer to peer network concepts

Banking and finance, identify the role of the regulators and problems assoc...

identify the role of the regulators and problems associated with regulation

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