Answer:
Part 1
Both methods :
1. ignore the cashflows after the Payback Period
Part 2
Drawback :
This means projects with early cashflows are preferred to those with late cashflows.
Explanation:
The Payback period is the length of time required for the total cashflows to equal the initial capital investment.
Both the payback and discounted payback ignore the cashflows after the Payback Period.
