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NPV - Pay Back Period

Your CEO insists that all projects should have a payback period of four years or less. As a result, attractive long-lived projects are being turned down. The CEO is willing to switch to a discounted payback with the same four-year cut-off period. Would this be an improvement?

Please prepare a 5 to 6 page discussion paper detailing your position, with at least two articles supporting your position.

Solution Summary

The solution provides a pay back period recommendation by the CEO of a project.