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Payback period
Assessing Investment Recovery: Significance of Payback Period
December 11, 2023
What is the significance of payback period in capital budgeting?
The payback period measures the time required for an investment to recoup its initial cost. It serves as a simple metric for assessing liquidity and risk, providing a timeframe within which initial investments are recovered.
Tags : Payback Period , Capital Budgeting , Investment Recovery