Businesses need to make investments to grow — that’s a given. But how do you know which investments are likely to be worthwhile? There are a variety of ways to calculate a return on investment (ROI) — net present value, internal rate of return, breakeven — but the simplest is payback period.
A Refresher on Payback Method
How long will that investment take to pay off? Do the math.
April 18, 2016
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Finance Essentials Course
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New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.