A disadvantage of using the payback period method for selecting projects is that it cannot reflect the time-value of money.

Question

Quizplus · Accepted Answer

The payback period method focuses on how quickly an investment can be recouped and does not take into account the time value of money, which is the concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

A Disadvantage of Using the Payback Period Method for Selecting