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..
Matching or accrual, Matching or Accrual The accrual concept makes...
Matching or Accrual The accrual concept makes a distinction among the receipt of cash and the right to receive it, and the payment of cash and legal obligation to pay it.
Cost of capital, what is the major value of the weighted cost of capital ca...
what is the major value of the weighted cost of capital calculation for the firm?
Operating cycle, discuss the applicability of operating cycle and any other...
discuss the applicability of operating cycle and any other financial knowledge to poultry business in uganda
What is an annuity?, What is an annuity? An annuity is a sequence of e...
What is an annuity? An annuity is a sequence of equal cash flows, spaced consistently over time.
Average of relatives method, Average of Relatives Method We have seen ...
Average of Relatives Method We have seen the construction of an index number using the aggregates method. In this section, we shall see the construction of an index using the
Describe your role in managing a discrete assignment, Describe your role in...
Describe your role in managing a discrete assignment
Who owns a credit union, Who owns a credit union? Explain. The term Cre...
Who owns a credit union? Explain. The term Credit unions are owned by their members. While credit union members put money in their credit union, they are not exactly "depositin
Modern approach at financial problems, Modern approach at financial problem...
Modern approach at financial problems With the advent of technology and need to tighten shipsdue to competition, financial management became as much a science as art. Efficient
Interest rates over the business cycle, Interest rates are the key de...
Interest rates are the key determinants of business cycles in emerging market countries. In the past, several economies had experienced frequent and great changes
Illustrate the term structure of interest rates, Illustrate the term struct...
Illustrate the term structure of interest rates? The term structure of interest rates: The term to maturity affects the interest rate. Bonds along with identical risk may
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
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.