(Answered) In your view if the payback period method is used in

Finance

In your view, if the payback period method is used in conjunction with the NPV method, should it be used before or after the NW evaluation?

In tough economic times, the standard for a payback period is often reduced. Chief information officers (Cos) are apt to reject projects with payback periods of more than 2 years. ‘We start with payback period,” says Ron FijaIkowski CID at Strategic distribution, inc. in Bensalem, pennsylvania. “For sure, if the payback period is over 36 months, it’s not going get approved. But our rule of thumb is we’d like to see 24 months. And If it% close to 12, it’s probably a no-brainer.”

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