A project may have a short payback period for a return of the investment but not contribute to the overall profitability of the business.

Name: A project may have a short payback period for a return of the investment but not contribute to the overall profitability of the business.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A short payback period indicates that the initial investment is recovered quickly, but it does not necessarily mean the project will contribute significantly to the business's net profit over its entire lifespan.

A Project May Have a Short Payback Period for a Return