Question: What is the payback method? What are its main strengths and weaknesses? Question content area bottom Part 1 What is the payback method? Payback is

What is the payback method? What are its main strengths and weaknesses?

Question content area bottom

Part 1

What is the payback method?

Payback is a method for analyzing the financial aspects of projects that

calculates the discount rate at which an investment's present value of all expected cash inflows equals the present value of its expected cash outflows.

calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows back to the present point in time using the required rate of return.

divides an accrual accounting measure of average annual income of a project by an accrual accounting measure of investment.

measures the time it will take to recoup, in the form of expected future net cash inflows, the net initi

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