One 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 calculates the amount of time it takes for an investment to recoup its initial cost, which provides insight into the project's liquidity and risk. A shorter payback period typically indicates lower risk and higher liquidity, while a longer payback period may indicate higher risk and lower liquidity.

One Advantage of the Payback Method for Evaluating Potential Investments