Advantages, The Payback Method

*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)

PART -7

5.2 ADVANTAGES, THE PAYBACK METHOD

The main capital of the investment is reserved at the payback method.

• Sometimes payback can increase liquidity if it is before the time.
• While payback period is more than its time, there can be investment risk.
• Most of time, short term predictions are more trustworthy than long term.
• Payback period calculation is rapid and easy.
• Payback method is clear and simple to understand.