Managers may use the payback period as a rough estimate of the riskiness of a project.

Name: Managers may use the payback period as a rough estimate of the riskiness of a project.
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The payback period tells how long it will take a project to recoup its initial investment. If the payback period is short, the project is considered less risky compared to other projects with a longer payback period. Therefore, managers can use the payback period as a rough estimate of the riskiness of a project.

Managers May Use the Payback Period as a Rough Estimate