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

Active clearance control system, Active clearance control system The sy...

Active clearance control system The system provides fan discharge air for cooling the core compartment and the low-pressure turbine case. At low altitudes the core engine requ

Civil engineering structures, I need help for my project report plz. > Prec...

I need help for my project report plz. > Precast concrete panels manufactured in factory environments and rapidly cured using steam are being used for the walls of shallow foundati

Double cantilever beam, Double Cantilever Beam In the double cantilever...

Double Cantilever Beam In the double cantilever configuration, the ends of the sample are pulled apart, forcing a crack to propagate down the beam from one end. The figure belo

Types of cyclic repetition blocks in dab or dvb broadcasting, Question: ...

Question: (a) Explain the three types of cyclic repetition blocks in DAB or DVB broadcasting. (b) DAB and DVB use stream and packet modes whereas MBMS uses broadcast and mu

Composite materials - rotational stability equations, Rotational stability ...

Rotational stability equations  The torque T applied to any rigid vehicle with moving c.g. is in general determined by T = ∂HVE/∂t|E + uvE ×MugE where E is the inertial a

Shift registers, Shift registers A register is a number of flip-flops a...

Shift registers A register is a number of flip-flops arranged in a circuit used for storing data.  A shift register is one that is designed to move the data along the register.

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

Electrical engineering, i want to take your kelp in writing the research pa...

i want to take your kelp in writing the research paper, which can be published in reputed international journal.

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