The payback period method of investment decision making is generally regarded as:

Question

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The payback period method is a simple and quick way to evaluate the time it takes for an investment to generate enough cash flow to recover its initial cost. However, it does not take into account the time value of money or consider cash flows beyond the payback period, making it too simplistic to be the only tool used in decision-making. It should be used in conjunction with other methods such as net present value or internal rate of return to make a more informed investment decision.

The Payback Period Method of Investment Decision Making Is Generally