Some managers are critical of payback analysis because it places all the emphasis on early costs and benefits and ignores the benefits received after the payback period.

Question

Quizplus · Accepted Answer

Payback analysis only considers the time it takes to recover the initial investment, and does not take into account any benefits or costs that occur after that point. Therefore, some managers feel it is limited in its scope and does not provide a complete picture of the project's profitability over its entire lifespan.

Some Managers Are Critical of Payback Analysis Because It Places