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A Refresher on Payback Method

Harvard Business Review

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. What is payback period? ” The shorter the payback period, the better. Finance & Accounting Article.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, in contrast, chase risky projects that have lottery-like payoffs. Risk is now considered a feature, not a bug.

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How to Better Manage Your Company’s Utility Bills

Harvard Business Review

In our experience, well-designed retrofits can deliver 20%-50% energy savings with fast payback periods. Second, major capital events such as renovations or retrofits, which companies typically undertake every few decades, provide the opportunity for even deeper savings given recent advancements in green construction.