What is the assessment method widely used in practice which enables managers to screen investment projects to determine which projects can recoup their investment outlay the fastest?

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The payback method is widely used in practice to determine the time period required to recover the initial investment outlay. This method is preferred by managers who are risk-averse and want to recoup their investment outlay in the shortest possible time. The payback method is simple to understand and calculate, making it a popular choice for small businesses with limited resources. However, this method has its shortcomings as it does not consider the time value of money and ignores cash flows beyond the payback period.

What Is the Assessment Method Widely Used in Practice Which