What is the drawback of pay back period as a metric of energy economics?
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➡️It does not consider time value of money.
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➡️It does not consider time value of money.
✌️ I THINK IT HELPED YOU ✌️
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Pay back period is based on determining the number of years required for the invested capital to be recovered from net cash flows. 1. A rapid pay back may be prime criterion for judging an investment when financial resources are available to the investor only for a short period of time.
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