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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.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

I talked with Jill Avery, a senior lecturer at Harvard Business School and co-author of HBR’s Go To Market Tools , to better understand how to use this important calculation. “I like breakeven analysis because it is easy to understand and it’s often the simplest way to think about return on investment.”