1
Q
Definition
A
It represents the number of years needed to recoup the initial investment in a project
2
Q
How long will it be
A
Until the investment amount is recovered?
3
Q
Drawbacks
A
Time value and risk are ignored, and it ignores the cash flows after the payback period is reached
4
Q
Benefits
A
Easy to understand, use and indicates on which project is more appealing
BPT
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