The Payback Method The Payback Method Is a Popular Way to Analyse Investment

question 99

Essay

The payback method
The payback method is a popular way to analyse investment proposals.
i. Explain how the payback period is determined and how projects may be ranked using this method.
ii. What are the deficiencies of the payback method?

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Definitions:

Polymorphisms

The occurrence of two or more clearly different forms, or alleles, within the population of a species.

Polytypic

Describing the expression of genetic variants in different frequencies in different populations of a species.

Gene Flow

The transfer of genetic variation from one population to another, which can alter the composition of the gene pool.

Inbred

Resulting from breeding among close relatives, often leading to a higher chance of heritable genetic disorders.