Describe the Use of Payback Method
This capital budgeting scenario implies that the. Projects that meet the target payback period should be profitable. Project Selection Methods Top 5 Criteria Milestonetask Mathematical Expression Method Success Factors Use payback method for your answer. . Payback method does not specify any required comparison to other investments or investment decision making. The payback period is an evaluation method used to determine the time required for the cash flows from a project to pay back the initial investment. Describe the advantages and disadvantages of each method. On the other hand payback method looks at the number of years which make it simple and easy to understand. 75000 45000 13500 1500 15000. Computation of net annual cash inflow. The payback period is a method commonly used by investors financial professionals and corporations to calculate investment returns. It does not track the ultimate profitab...