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The payback period is useful as a measure of a project's liquidity risk, but it has several weaknesses: Does not account for the time value
The payback period is useful as a measure of a project's liquidity risk, but it has several weaknesses:
| Does not account for the time value of money |
| No objective criterion for what is an acceptable payback period |
| Cash flows occurring after the payback period have no impact upon the payback computation. |
| All of the above |
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Accounting and Auditing Research Tools and Strategies
Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana
9th edition
1119441915, 1119441919, 978-1-119-3737, 9781119373629 , 978-1119441915
