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

Effect of precipitate particles in strengthening, Q. Discuss the role of pr...

Q. Discuss the role of precipitate particles, strengthening crystalline materials against yield as low as well as high temperature of deformation. Ans. Effect of precipitate p

Interference of light, Explain the formation of newton''s ring in reflected...

Explain the formation of newton''s ring in reflected light. Prove that the radius of the bright rings are proportional to the square root of the positive odd interger

Virtual prototyping techniques, Virtual prototyping techniques provide uni...

Virtual prototyping techniques provide unique way of interacting with computer data and images. These removes the barriers of key board, monitor and mouse and allow user to experi

Various characteristics of metal powders, Q. Describe the various character...

Q. Describe the various characteristics of metal powders to be considered before their selection for any process. Ans. Metal Powder Characteristics          Both t

Trade-offs in communications designs, Trade-offs in Communications Designs ...

Trade-offs in Communications Designs Satellite and Deep Space Communications               - Power is expensive to generate in space and transmission distances are eno

True or false, Beta coefficients and standard deviation may be used as indi...

Beta coefficients and standard deviation may be used as indicators of risk

Propeller pitch control, Propeller pitch control: Before looking at pro...

Propeller pitch control: Before looking at propeller pitch control an understanding of the relationship between the 'Power Lever' and the 'RPM (condition / speed) Lever' with r

Quality engineering and management, Describe the principle parts of a quali...

Describe the principle parts of a quality function deployment matrix

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