Talk:Payback period/Archives/2014

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Explaining the Disadvantages

In some parts of the world the use of this measure is very prevalent, even for comparing between projects. I often contemplate how to explain to top decision-makers that this measure is outdated, and more suitable for small grocery stores; and to encourage them to use NPV instead. One realization that I had over the last few weeks is this overwhelming argument:

Payback Period should only be used by people who are interested in returning their investment only once / one time over.

I hope there is some way to include it in the article's page. I could have just added it to the page myself, but I'm not sure how, as the purpose of Wikipedia pages is to inform more than to convince. Nevertheless, this single sentence can do a lot of good to many companies and to the world if it is placed where people read it, here included. So if you're reading this, please offer a solution for how to include it still. Thank you! — Preceding unsigned comment added by Yarp79 (talkcontribs) 05:39, 1 December 2014 (UTC)