Remove Net Present Value Remove Payback Period Remove ROI Remove Short-term

An HBR Refresher on Breakeven Quantity

Harvard Business Review

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. ” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money.