The advantage of the payback period over other capital budgeting techniques is that

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The advantage of the payback period over other capital budgeting techniques is that it is the simplest and oldest formal model to evaluate capital budgeting model. However, it does not account for the time value of money, ignores cash flows beyond the payback period, and does not always lead to decisions that maximize the value of the firm. It also does not incorporate risk into the discount rate used to solve the payback period.

The Advantage of the Payback Period Over Other Capital Budgeting