A disadvantage of an investment with a short payback period is that it will produce revenue for only a short period of time.

Question

Quizplus · Accepted Answer

The statement is false. A short payback period means that the investment will recoup its initial cost quickly, which can be advantageous. However, it does not necessarily mean that the investment will produce revenue for only a short period of time. The duration of revenue generation depends on various factors such as the type of investment, market conditions, and competition.

A Disadvantage of an Investment with a Short Payback Period