A downside of the payback period is that it disregards the time value of money. Investopedia / Tara Anand The payback period helps to determine how long it will take to recover the initial costs ...
and employ the time value of money (TVM). For example, a solid model for finding a company’s intrinsic value is the dividend discount model (DDM). One variety of DDM is the Gordon Growth Model (GGM), ...