Using the payback period to evaluate an investment

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Reference no: EM131012141

1. All companies have a cost of capital and you do as well on a personal level. From a personal perspective, what do you believe is an acceptable cost of capital? How are you basing answer or what are you measuring it against?

2. What are the disadvantages of using the payback period to evaluate an investment?

3. Under what circumstances would using the payback period to evaluate an investment be an appropriate one?

4. If you were given the option of only using 2 methods to evaluate an investment decisions, which two would you choose and why?

Reference no: EM131012141

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