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Demerits Of Pay-back Period Method Of Capital Budgeting And Evaluation

Demerits Of Pay-back Period Method Of Capital Budgeting And Evaluation:

finance
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1. It ignores the time value of money.

2. It ignores all cash inflows after the pay-back period.

3. It is one of the misleading evaluations of capital budgeting.

Demerits Of Pay-back Period Method Of Capital Budgeting And Evaluation Demerits Of Pay-back Period Method Of Capital Budgeting And Evaluation Reviewed by Ikpokolo Francis on Monday, May 15, 2017 Rating: 5

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