In the preceding chapter we examined the payback period capital- budgeting criterion. Often this capital- budgeting criterion

Question:

In the preceding chapter we examined the capital- budgeting criterion. Often this capital- budgeting criterion is used as a risk- screening device. Explain the rationale behind its use.
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,...