payback period

[dimpy.handa]

Looking for payback period despite being conceptually unsound, payback period is very popular in business as a criteria for assigning priorities to investment projects. Wat are the main reason for this?

 

[Paramjeet_1988]

It does not take the time value of the money being the main reason apart from that the calculation is not continuous you can not tell at a particular time that proportionaltey this much money must have been accumulated.

 

[vardhanvishnug]

payback period method considers the annual cash flows and easy to compute

 

[rosemarry2]

despite being conceptually unsound, payback period is very popular in business as a criteria for assigning priorities to investment projects. Wat are the main reason for this?

Hey friend,

Here I am up-loading Calculating payback periods, please check attachment below.

 

[Himanshi Agarwal]

The payback period is calculated by dividing the amount of the investment by the annual cash flow.