When management considers an investment,they look for the payback period to be:

Question

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Management typically seeks to invest in projects that have a short payback period. This is because a short payback period will allow the company to quickly recoup its initial investment and begin generating profit. Additionally, a short payback period reduces the risk associated with the investment, since there is less time for economic conditions to change or unexpected events to occur that could affect the project's profitability.

When Management Considers an Investment,they Look for the Payback Period