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

Core sand, Q.27 Explain the desirable characteristics of core sand. What ar...

Q.27 Explain the desirable characteristics of core sand. What are the normal binders used in core sand ? Types of cores used in foundry. Ans. Core Sand : The core and ma

Zener diode, easy defination of zener diode nd its application and characte...

easy defination of zener diode nd its application and characteristics ?

Case study, I need to get this case study done. Here is a link to the case...

I need to get this case study done. Here is a link to the case: Disregard">http://ss-edu.info/df/cases/Case%2094.pdf Disregard question 10.

Seekers , Seekers There are two main types of sensor used in autono...

Seekers There are two main types of sensor used in autonomous vehicles (seekers and position/attitude sensors) - although not all systems have both. - Airc

Bay cooling in aircraft, Bay cooling in Aircraft: There are two methods...

Bay cooling in Aircraft: There are two methods of bay cooling, they are: • Ram air cooling • Fan air cooling RAM AIR COOLING For ram air cooling, the aircraft has to

PLC, True or False, In a PLC system, there is a physical connection between...

True or False, In a PLC system, there is a physical connection between field input devices and output devices.

Casting, Casting means the pouring of molten metal into a mould, where soli...

Casting means the pouring of molten metal into a mould, where solidification occurs. Advantages of Casting Process (i) It is the cheapest method of fabrication.

Noise suppression in aircraft design, Noise Suppression in Aircraft Design:...

Noise Suppression in Aircraft Design: It has been seen that the first step towards noise suppression is at the design stage of the rotating and static parts of the engine. The

Matlab coding, create 22 elements in scalar hint:for loop or any loop state...

create 22 elements in scalar hint:for loop or any loop statement and append to previous variable element by elements

Thin-skinned structures , Thin-skinned Structures The SCB geometry can...

Thin-skinned Structures The SCB geometry can't be used because the skins are too flexible. Instead, a centre-notch flexure (CNF) test can be used. A hole is drilled abo

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