Payback Period Method
  Formula:=Net initial investment
  Increase in annual net after-tax cash flow
  Advantages
  -Easy to use and understand–no complex formulas
  -Emphasis on liquidity–management focus on return of capital
  Limitations
  -The time value of money is ignored
  -Project cash flows occurring after the initial investment is recovered are not considered
  -Reinvestment of cash flow is not considered
  -Total project profitability is neglected.

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