Assertion: payback period | /r/CapableOf | ignore the time value of money
Facets:
value: unlike other methods of capital budgeting
type: OTHER
Source sentences:
text: But there is one problem with the payback period calculation: Unlike other methods of capital budgeting, the payback period ignores the time value of money (TVM)—the idea that money today is worth more than the same amount in the future because of the present money's earning potential.