One drawback of the payback criterion for evaluating, Ask an Expert

Accounting

Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money. Why do you think this is a correct statement?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9408714

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