Question

what are The limitation of payback?

Answer 1

The limitation of payback are as follows:-

Answer ,capital budgeting include the fact that it fails to take into account the time value of money and does not factor in the value of additional cash flows beyond the payback period.

Answer 2

The playback  period (which tells the number of years needed to recover the amount of cash that was initially invested) has to limitations  or drawbacks: The net incremental cash flows are usually not adjusted for the time value of money.