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

Differentiator, Differentiator: With negative feedback applied through ...

Differentiator: With negative feedback applied through a resistor and the input signal through a capacitor, the circuit will perform the mathematical operation of differentiati

Financial engeneering, “A swap bank has to entail certain risks which are i...

“A swap bank has to entail certain risks which are inherent to the swap business and are interrelated” Explain the risks involves in swap business.

Blasting, Students are to undertake a tunnel blast design for the following...

Students are to undertake a tunnel blast design for the following conditions: • Tunnel is 5.5m wide by 5.5.m high • Rock is a granite with a UCS of 300 MPa • Drill hole diameter is

Aeroengine - rotor flow kinematics , Flow through axial-flow turbo machine ...

Flow through axial-flow turbo machine rotors can often be assumed axisymmetric i.e. velocity components do not change around the rotor circumference either at inlet or at outlet. N

Unit operations , Can you guys Solve Unit Operations Problems in Chemical e...

Can you guys Solve Unit Operations Problems in Chemical engineering

Fractional distillation in fuel - aircraft maintenance , Fractional distill...

Fractional distillation This process is carried out in a fractionating column, which has a series of trays as shown in the figure. The effect of the superheated steam on the h

A/c question 1, Briefly describe a simple method of estimating summer outsi...

Briefly describe a simple method of estimating summer outside air conditions for the design calculations of an air conditioning scheme. If a more accurate assessment of heat gains

Aerodynamic centre, On a typical aerofoil, a point exists about which the r...

On a typical aerofoil, a point exists about which the resultant aerodynamic pitching moment M is independent of incidence. This special point is called the Aerodynamic Centre (AC).

Accounting hep, Here are the budgets of Brandon Surgery Center for the mos...

Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars): Static Flexible Actual Number of surgeries 1,200 1,300 1,

Laptop, How laptop making main function plz established??

How laptop making main function plz established??

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