Non-discount method of capital budgeting does not explicitly consider the time value of money. In other words, each pound earned in the future is assumed to have the same value as each pound that was invested many years earlier. The payback method is one of the techniques used in capital budgeting that does not consider the time value of money.(Prentice, Hall 1987)“ The Payback period is the most popular technique and is used through-out business it’s often calculated before tax, and always after accounting depreciation. The advantages to the payback period its easy to compute and apply. It fails to consider the time value of money. Cash inflows, in the payback calculation, are simply added without suitable discounting. This violates the most basic principle of financial analysis which stipulates that cash flows occurring at different points of time can be added or subtracted only after suitable compounding / discounting. (http://www.openlearningworld.com/books/Investment%20Appraisal/Investment%20Appraisal%20-%20Methods%20And%20Considerations/Non-discounting%20Methods.html)
Investment Approval:
Different elements to be considered on the undertaking determination incorporates hazard as money related and non-monetary variables. As talked about in NPV segment, we have accepted an expense of capital of 8% on all activities. This has not represented the diverse dimensions of hazard from each. For instance, more obligation would mean a change to cost of capital. The capital structure of the organization is changing in 2016 with all the more equipping or obligation to value. It ought to be affirmed if the 8% cost of capital is representing this change.

On the monetary examination, assessments could conceivably not be right and that ought to be considered. A potential region for further examination is consider an affectability investigation on all ventures proposed. This could be, for instance, an or more/less 10% or for best case/more terrible case on the income contributions of each venture to see the subsequent yield (NPV and so on) and if the modified yield would change the choice on task choice or show requirement for a relief plan.

Non-money related components to consider incorporate the kinds of tasks being proposed. Undertaking (C) would appear to conceivably have more hazard regions from creating items not recently delivered by Outdoors PLC, absence of information, unexpected costs, for example, contracting new staff or preparing existing staff and the capacity for Outdoors PLC to finish in this new market. Undertaking (An) and (B) would seem to have less hazard factors from expanding on an officially steady retail outlet and moving into web deals on effectively settled items. Different contemplations would incorporate worker effects, for example, a decrease in retail staff with a move to web deals or an exp