The time value of money is ignored by the payback period and the ARR Explain why this is a major deficiency in these two models ...

The time value of money is ignored by the payback period and the ARR. Explain why this

Question:

The time value of money is ignored by the and the ARR. Explain why this is a major deficiency in these two models.

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,...