The payback method and the rate of return method are both conceptually better than the discounted cash flow models because they are based on cash flows.

Question

Quizplus · Accepted Answer

The payback method and the rate of return method, while based on cash flows, are considered less comprehensive than discounted cash flow models because they do not account for the time value of money, risk, or cash flows beyond the payback period.

The Payback Method and the Rate of Return Method Are