The payback method of evaluating capital expenditure projects is very popular because it's easy to calculate and understand. It has severe limitations, however, and ignores many important factors that ...

Small businesses frequently use the "payback" method when deciding which projects to pursue. This method is easy to understand, and its relatively short-term focus suits a risk-averse business owner, ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...