PBP Strengths and Weaknesses Strengths Weaknesses o Easy to use and Does not account understand for Tvm Can be used as a Does not consider measure of cash flows beyond liquidity the PBP n Easier to forecast Cutoff period is ST than LT flows subjective 13-1013-10 PBP Strengths and Weaknesses Strengths: Easy to use and understand Can be used as a measure of liquidity Easier to forecast ST than LT flows Weaknesses: Does not account for TVM Does not consider cash flows beyond the PBP Cutoff period is subjective