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The Payback method is not a true measure of the profitability of an investment. It just tells a manager how many years are required to
The Payback method is not a true measure of the profitability of an investment. It just tells a manager how many years are required to recover the original investment. What are the two additional criticisms of the Payback method that we discussed in class? The Simple Rate of Return method does not use cash flow but focuses on 'net operating income.' What is the other major criticism of the Simple Rate of Return method that we discussed in class? What are the two simplifying assumptions associated with the Net Present Value method that we discussed in class? What is the 'questionable assumption' made in the Internal Rate of Return method that we discussed in class
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