The document summarizes the advantages and disadvantages of several capital budgeting techniques: 1) Payback period is simple to calculate but ignores the time value of money and risk of future cash flows. 2) Discounted payback period considers time value of money and risk but ignores cash flows beyond the payback period. 3) Net present value considers all cash flows and the time value of money but requires an estimate of the cost of capital. 4) Internal rate of return and modified internal rate of return consider all cash flows and risk but require an estimate of the cost of capital and may not provide the optimal decision for mutually exclusive projects or when capital is limited.