What are the limitations of the payback period method for making capital-budgeting decisions (e.g., whether to accept

Question:

What are the limitations of the method for making capital-budgeting decisions (e.g., whether to accept or reject a proposed investment)? Does the present value overcome these limitations?

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,...