Payback period method, finance, Other Engineering

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

What is treasury bills?, What is Treasury Bills? Treasury expenses are o...

What is Treasury Bills? Treasury expenses are one of the finance devices in temporary money market. It is unprotected promissory observe from the govt part of the RBI to satisfy

Risk and return, if we are comparing the risk and return of two stocks. wha...

if we are comparing the risk and return of two stocks. what to calculate, what to analyza and what conclude

Explain the following spread spectrum techniques, Question : What is th...

Question : What is the ISM band and what is particular about this frequency band? Name two wireless technologies that make use of the ISM frequency band. a) Explain the foll

Isdn, Explain the meaning of numbering and addressing in ISDN network.

Explain the meaning of numbering and addressing in ISDN network.

Layout and operation of typical thrust reversing system, Layout and operati...

Layout and operation of typical thrust reversing system: Clamshell door system The clamshell door system is a pneumatically operated system, as shown in detail in fig Norm

Harriman, HARRIMAN MANUFACTURING COMPANY Harriman Manufacturing Company i...

HARRIMAN MANUFACTURING COMPANY Harriman Manufacturing Company is evaluating the purchase of a new piece of equipment. The quoted price is $50,000, and it would cost Harriman anot

Logic gate -xor gate, 'Exclusive or' gate: The basic OR gate illustrate...

'Exclusive or' gate: The basic OR gate illustrated previously in Figure 3 was seen to include the AND operation in that its output will adopt the 1 state not only when either i

Microprocessor and microcontroller, how processing was take place before 19...

how processing was take place before 1960

Blending or mixing, To achieve successful results in powder metallurgy the ...

To achieve successful results in powder metallurgy the metallic powder must be thoroughly homogenized. The term blending and mixing are both used in this content. Blending refers t

[email protected], First page rankings on Google We can put...

First page rankings on Google We can put your website on 1st page of Google to drive relevant traffic to your site. Let us know if you would be interested in getting detailed prop

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd