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Business
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The payback is described as high or low risks that depends on how quickly they can recover from their investments and it tells the limited sources of capital on how quickly the funds can be invested in future projects. If the payback period increased larger than 3 years, it would be rejected due to that increase...
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If the payback period increased larger than 3 years, it would be rejected due to that increase.
(Gitman, Chapter 9, pg 420)
Further assets in the land or building is well thought-out as significant cash flow. The investment would add to the cash flow. The money invested on the Net present value would depend on the specific amount, since the limit is close to the 3 year limit the payback would be greater and rejected due to that factor...
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