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

Define instant demit account?, What is Demit Account? What is the use of...

What is Demit Account? What is the use of it? Demit indicates Dematerialization of reveal, in easy it is an account with which a individual can business in protection industry w

Sources of engine noise - aircraft design, sources of engine noise To u...

sources of engine noise To understand the problem of engine noise suppression, it is necessary to have a working knowledge of the noise sources and their relative importance.

Engineering economic analysis definition, Introduction Engineering Econ...

Introduction Engineering Economic Analysis Definition: using a combination of quantitative and qualitative techniques to analyze economic differences among engineering design a

Fire prevention - fire risk assessment, Fire prevention - fire risk assessm...

Fire prevention - fire risk assessment: Fire prevention measures include: Reducing the combustible materials, Reducing the risk of ignition, Reducing

Mr tiy, Hi, do u help with HYSYS assignment ?

Hi, do u help with HYSYS assignment ?

Flight control - root location, In a continuous time linear system whenever...

In a continuous time linear system whenever any of the characteristic roots, say λ, has a positive realpart, ie R e (λ) = λ R > 0, then the system is unstable. Stability is ensure

Compressor stall and surge of aircraft, Compressor stall and surge: ‘Su...

Compressor stall and surge: ‘Surge' can occur in both centrifugal and axial flow compressors and is the reversal of the airflow in the compressor. It is a very undesirable con

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