The payback period is calculated by dividing the net investment by the net annual cash inflows or cost savings from the investment. It measures the time required for the returns or savings from an investment to repay the original investment amount. A shorter payback period is typically preferred as it indicates the investment returns the initial amount faster.
The payback period is calculated by dividing the net investment by the net annual cash inflows or cost savings from the investment. It measures the time required for the returns or savings from an investment to repay the original investment amount. A shorter payback period is typically preferred as it indicates the investment returns the initial amount faster.
The payback period is calculated by dividing the net investment by the net annual cash inflows or cost savings from the investment. It measures the time required for the returns or savings from an investment to repay the original investment amount. A shorter payback period is typically preferred as it indicates the investment returns the initial amount faster.
The payback period is calculated by dividing the net investment by the net annual cash inflows or cost savings from the investment. It measures the time required for the returns or savings from an investment to repay the original investment amount. A shorter payback period is typically preferred as it indicates the investment returns the initial amount faster.