A Refresher on Payback Method
APRIL 18, 2016
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. I talked with Joe Knight, author of the HBR TOOLS: Return on Investment and cofounder and owner of www.business-literacy.com , to learn more about how to understand and use this particular ROI method. What is payback period? ” The shorter the payback period, the better.