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Benefits of Payback Period
1. use simply and understand and it has created it popular among in ascertaining the viability of venture executives, mainly traditional financial managers.
2. Ideal beneath high-risk investments since it will identify such venture will payback earlier thus minimizing the risks by a venture.
3. Advantageous whenever choosing among mutually exclusive projects as it will offer a clue as to that venture is viable whether one considers the shortest PBP and that highest inflow of a venture.
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