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Why is the payback period NOT a valid method to evaluate potential capital investments?

Why is the payback period NOT a valid method to evaluate potential capital investments?

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Why is the payback period NOT a valid method to evaluate potential capital investments?
Payback period NOT a valid method to evaluate potential capital investment for following reasons:
1. It does not consider time value of money. It does not take into account cost of inflation.
2. It does not consider cash flows received beyond payback period. Thus overall profitability cannot be ascertained.
3. It is a very simple method. In cash of complex cash flows situation it will not be suitable to take decisions.
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