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What are the disadvantages of using the payback period as a capital- budgeting technique? What are its advantages? Why is it so frequently used?

What are the disadvantages of using the payback period as a capital- budgeting technique? What are its advantages? Why is it so frequently used?
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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Foundations of Finance The Logic and Practice of Financial Management

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: September 11, 2015 07:27:33
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