Prefer the payback period method

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A comparison of the survey results between the healthcare group and the non-healthcare group reveals major differences in their capital budgeting practices. One of these differences is that industrial firms employ discounted cash flow based techniques as the primary selection tool, while healthcare firms continue to emphasize the payback period method. Why do healthcare firms (especially, not-for-profit ones) continue to prefer the payback period method? Please Elaborate

Reference no: EM131316584

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Prefer the payback period method : A comparison of the survey results between the healthcare group and the non-healthcare group reveals major differences in their capital budgeting practices. Why do healthcare firms (especially, not-for-profit ones) continue to prefer the payback peri..

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