The regular payback method is deficient in that it does not take account of cash flows beyond the payback period.The discounted payback method corrects this fault.

Name: The regular payback method is deficient in that it does not take account of cash flows beyond the payback period.The discounted payback method corrects this fault.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

the discounted payback corrects the fault of not considering the timing of cash flows, but it does not correct for the nonconsideration of after-payback cash flows.

The Regular Payback Method Is Deficient in That It Does