The following reasons for using payback were made by finance executives from three different companies:

‘We use payback in support of other methods. It is not a sufficiently reliable tool to be used in isolation.’

‘When liquidity is under pressure, payback is particularly relevant.’

‘Payback helps to give some idea of the riskiness of the project – a long time to get one’s money back is obviously more risky than a short time.’

To what extent do you agree with these views?