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

Engineering Management, what is the best Master thesis that can be done i...

what is the best Master thesis that can be done in this major ?I need suggestions regards

Accurate design of heat transfer systems, Hollow cylinders are useful build...

Hollow cylinders are useful building structures commonly used for both industrial and domestic purposes. Tanks, cars and some transport machineries are all applications of inner-in

Specific air range & specific endurance , Specific Air Range & Specific End...

Specific Air Range & Specific Endurance  Key cruise parameters are Range (distance flown) and Endurance (time of flight). It is important to be able to relate these to the amou

Show down any banking products and services offered, Question: a) E-b...

Question: a) E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive commun

Auto cad, Assignment Title: Die Press Assembly Drawing The objective of th...

Assignment Title: Die Press Assembly Drawing The objective of this assignment is to demonstrate the following concepts of design. • Extrude • Revolve • Fillet • Dimensioning • To

The brayton cycle-aeronautical engineering, The brayton cycle: The work...

The brayton cycle: The working cycle of the gas turbine engine is similar to that of the four-stroke piston engine.  There is induction, compression, ignition and exhaust in bo

Corporate Restructuring, Corporate Restructuring Corporate restructuring r...

Corporate Restructuring Corporate restructuring refers to the changes in ownership, business max, assets mix and alliances with a view to enhance the shareholder value. Hence, cor

modified internal rate of return mirr, MODIFIED INTERNAL RATE OF RETURN (M...

MODIFIED INTERNAL RATE OF RETURN (MIRR) This method is a financial analysis to rank alternative investment projects of equal size. This method is modification of internal rate of r

Relaibilty , can u help me with a reliabilty assignment

can u help me with a reliabilty assignment

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