What weaknesses are commonly associated with the use of the payback period to evaluate a proposed investment?

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What weaknesses are commonly associated with the use of the payback period to evaluate a proposed investment?

Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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