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word question: The discounted payback period is generally considered superior to the payback period. By using...

word question:

The discounted payback period is generally considered superior to the payback period. By using the former management would never pick a project with a ( ???)

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The discounted payback period is generally considered superior to the payback period. By using the former management would never pick a project with a high payback period

Explanation

When a payback period is long it will take more time to recover the investment so the shortest payback period is generally consider to be more acceptable.This is a good rule to follow when we have to chose between two or more project.The main reason is to chose the shortest payback period is the longer the money tied up the less opportunities to invest it in anywhere else.

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