Advantage of payback period ratio


Problem: One advantage of the Payback Period Ratio is its simplicity of calculation and understanding. Nevertheless, it has two major defects:

It ignores any benefit that may occur after the payback period
It ignores the Time value of Money

Agree or disagree?

Please discuss and include references.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Advantage of payback period ratio
Reference No:- TGS01811870

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)