310chapter16m8

0 years 40 according to the companys criterion

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Unformatted text preview: d = Payback 4.0 years 4.0 According to the company’s criterion, According According to the company’s criterion, According management would invest in the management would invest in the espresso bar because its payback espresso bar because its payback period is less than 5 years. period period is less than 5 years. period Chapter 16 Module 8: Payback Period Advantage of Payback Method: 1. It is very easy to use, calculate, and understand Disadvantages of Payback Method: 1. It ignores the time value of money 2. It ignores all information that occurs after the payback period has been reached Chapter 16 Module 8: Payback Period Re-consider the espresso bar problem but let me add one more...
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