the model was criticized, the model evolved incorporating time value of money to create the discounted payback method. The models still reflected faulty ranking criteria but they provided important information about liquidity and risk:

The the payback, other things constant, the greater the project's liquidity.

Sup: shorter Manufacturing Corporation's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; how

longer

loes know that the project's regular payback period is $2\mathrm{.}5$ years.

$\backslash$table$[[$Year$,$Cash Flow$],[$Year $1,$$$375,000$