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What two pieces of information does the payback method provide that are absent from the other...

What two pieces of information does the payback method provide that are absent from the other capital budgeting decision methods?

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The two pieces of information the payback method provide that are absent from the other capital budgeting decision methods are:

1. It provides us the period by which we can recover back the investment. It says how long our funds are going to remain tied up. Shorter payback period provides greater liquidity

2. It provides indication of project's risk. In terms of risk distant cash flows are more risky than near-term cash flows. Shorter the payback period, lesser the risk.

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