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

Compressor damage, Compressor Damage Foreign objects often enter engine...

Compressor Damage Foreign objects often enter engine air intakes either accidentally or through carelessness. Items such as pens, pencils cigarette lighters etc. can be drawn o

Edc, Combination clipper

Combination clipper

Enhancement mode mosfet, ENHANCEMENT MODE MOSFET In the enhancement-mod...

ENHANCEMENT MODE MOSFET In the enhancement-mode type, the gate must be forward biased to produce charge carriers in the channel. These devices are normally of and do not condu

Limiting travel distances - means of escape, Limiting travel distances - Me...

Limiting travel distances - Means of Escape: Some buildings, or parts of buildings, do not have alternative exits and do not have protected escape routes leading to a place of

Hot and cold working, advantages and disadvantages of cold and hot working

advantages and disadvantages of cold and hot working

Flash in forging, Q. Explain the following terms.             ...

Q. Explain the following terms.             (i) Flash in forging.            (ii) Fullering and up setting in forging.            (iii) Trimming of

Control surfaces , Control Surfaces  As with a flight control system...

Control Surfaces  As with a flight control system, a guidance algorithm uses control surfaces to control the behaviour of an airframe.         - Rudder, ailerons, elev

Re-heat system in aircraft engine, RE-HEAT (AFTER BURNING) Re-heat is a...

RE-HEAT (AFTER BURNING) Re-heat is a system fitted to a gas turbine engine as a means of increasing the total thrust. As much as twice the thrust can be obtained using reheat.

Case study, I need to get this case study done. Here is a link to the case...

I need to get this case study done. Here is a link to the case: Disregard">http://ss-edu.info/df/cases/Case%2094.pdf Disregard question 10.

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