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

Excel, How do I finish a tough Engineering assignment in excel?

How do I finish a tough Engineering assignment in excel?

8051, Architecture of 8051

Architecture of 8051

Schottky diode, working,V-I characteristics,applications and construction o...

working,V-I characteristics,applications and construction of schottky diode?

New building completion - fire safety management, Ne w building completion...

Ne w building completion: New buildings have to be constructed to meet certain fire safety standards.  It is not acceptable for buildings to be built that do not attain a min

Production Inventory Control, Modular Forniture Company manufactures two ki...

Modular Forniture Company manufactures two kinds of couches: Suede and Leather. The forecasted demand for

Y 4 u, Ask questioy 4 men #Minimum 100 words accepted#

Ask questioy 4 men #Minimum 100 words accepted#

#LED MOVING DISPLAY, want a circuit manual of previous led moving dispaly

want a circuit manual of previous led moving dispaly

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