Customer Service Chat
Get quote & make Payment
Advantages and disadvantages of pay back period, Financial Management
It is easy to calculate and catch.
With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.
It indirectly considers factors such as obsolescence and liquidity of investments because project with shortest payback period is exposed to less risks.
This technique is useful to the company experiencing shortage of cash because it assists in choosing a project that will yield a quick return of cash fund regardless of its long-term profitability.
It does not measure the profitability of the projects.
It fails to consider any receipts after the payback period, no matter how great they might be. As a result, a project with shorter payback period may be selected against a project with a longer pay back period but longer income producing life and greater return on investment.
It ignores time value of money.
Posted Date: 10/15/2012 9:20:01 AM | Location : United States
Ask an Expert
Advantages and disadvantages of pay back period, Assignment Help, Ask Question on Advantages and disadvantages of pay back period, Get Answer, Expert's Help, Advantages and disadvantages of pay back period Discussions
Write discussion on Advantages and disadvantages of pay back period
Your posts are moderated
Write your message here..
Budget, what are the advantages and disadvantages of incremental budgeting?...
what are the advantages and disadvantages of incremental budgeting?
Define the common pattern of cash flows, What is the common pattern of cash...
What is the common pattern of cash flows for a share of preferred stock? How does the market define the value of a share of preferred stock, specified these promised cash flows?
Design, D esign, Drawing and Bill of Quantities (BOQ) for works We dis...
D esign, Drawing and Bill of Quantities (BOQ) for works We discussed about INCO terms which are set standards for the project. Now let us learn about other parameters for cont
Types of warrants, Types of Warrants The warrants can be classified int...
Types of Warrants The warrants can be classified into different types. They are: Detachable Warrants These warrants are issued with most debentures, like convertible o
Budget classification on the basis of flexibility, ON THE BASIS OF FLEXIBIL...
ON THE BASIS OF FLEXIBILITY • Fixed budget: this is designed to stay unchanged irrespective of the volume of output or turnover attained. The budget remains unchanged over
Caselet, Suggestion regarding credit limit. should it be approved or not, w...
Suggestion regarding credit limit. should it be approved or not, what should be the amount of credit limit that electronics give to booth plastics
Mathematical property of median, Mathematical Property The sum of the d...
Mathematical Property The sum of the deviations of the items from median, ignoring signs, is the least. For example, the median of 6, 10, 14, 18 and 22 is 14. The deviations fr
Receipt of bids and bid opening, R eceipt of bids and bid opening We d...
R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv
What do you mean by shares, Q. What do you mean by Shares? Shares: issu...
Q. What do you mean by Shares? Shares: issue of the share is the most important source of the long terms capital. A company can issue various type of the share as the equity an
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.