Which payback period will managers want when the risk of obsolescence is high?

Question

Quizplus · Accepted Answer

When the risk of obsolescence is high, managers will want to recover their investment as quickly as possible. This is because the longer the payback period, the higher the risk that the investment will become obsolete before it can generate sufficient returns. Therefore, managers will prefer a shorter payback period, which allows them to recoup their investment faster and reduces the risk of obsolescence.

Which Payback Period Will Managers Want When the Risk of Obsolescence