Case summary:
Chief information officers stated that the project with more than 2 years of payback periods will be rejected. The standard of the payback period is reduced due to the tough economic times. Payback period would mention the beginning stage of the project. However, it could not help to analyze the full lifetime of the project.
The simplicity in determining the payback period would result in failure of training, maintenance, and hardware upgrade cost. Person IC stated that payback period is essential than discounted cash flow while evaluating the IT projects.
To determine: Whether the conjunction of payback period and
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Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
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