advantage of the payback method for evaluating potential investments is that it provides information about a project's liquidity and risk.

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The payback method is useful in determining how quickly an investment can generate enough cash flows to recoup the initial investment. This information can be useful in assessing a project's liquidity and risk, as a shorter payback period indicates a lower risk and greater liquidity.

Advantage of the Payback Method for Evaluating Potential Investments Is