Payback period advantages include the fact that it is very simple method to calculate the period required and because of its simplicity it does not involve much complexity and helps to analyze the reliability of project and disadvantages of payback period includes the fact that it completely ignores the time value of money, fails to depict the detailed picture and ignore other factors too.
Simple Payback Isn’t a Key Performance Metric
Dear Reader: We’re pretty negative on the value of the Simple Payback metric in assessing the investment quality of a potential LED lighting retrofit, as…