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

Continuity equation - ducts and nozzles, Continuity equation If we co...

Continuity equation If we consider the machine to be an open-ended duct, we find that the mass flow per second will depend on the density of the fluid and the volume flowing

State vectors , State Vectors  In engineering - particularly control...

State Vectors  In engineering - particularly control engineering - most systems are represented by a state vector.  - The state vector contains all of the relevant qua

Probability distribution in matlab, I would like to ask in detail. How can ...

I would like to ask in detail. How can I attach the files?

Cell arrays matlab, Expertsmind.com offers  Cell Arrays matlab assignment ...

Expertsmind.com offers  Cell Arrays matlab assignment help In matlab, Cell arrays are just like frequent arrays in that they are "indexed" details of information, with an out

Analyze an organization''s competition, Briefly explain how to analyze an o...

Briefly explain how to analyze an organization''s competition Answer: In order to analyze an organization’s competition, the following aspects need to be checked and recorded in o

Embossing and coining, Embossing is a forming operation used to create inde...

Embossing is a forming operation used to create indentation in the sheet, such as raised (indented) lettering or strengthening rips, as shown in fig. Some stretching and thinning o

Calculate the heat transfer coefficient , Water is flowing at 0.5 ms-1 acro...

Water is flowing at 0.5 ms-1 across a 7.5 cm diameter sausage at 80°C. If the bulk water temperature is 15°C, estimate the heat-transfer coefficient. a) What type of heat tranfe

Aerodynamics-influence on transition, Influence on transition Reynold...

Influence on transition Reynolds number - relates importance of viscousforces (relative to inertia) Lower Re - molecular diffusion more important; disturbances damped out

Four stroke diesel engine, FOUR STROKE DIESEL ENGINE: T he cycle of ev...

FOUR STROKE DIESEL ENGINE: T he cycle of events that takes place in a four -stroke diesel engine has been shown. Unlike the petrol which drawn in a mixture of air and petrol,

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