Business Investment Strategy: Payback Period

What strategies do they use to make investment decisions? In this video, we will discuss how business use both screening decisions to determine acceptable investments. Once a business has created a shortlist of investments, the business will use a preference decision to decide which investment to select. Businesses have many tools to make screening and preference decisions.

In this video, we will talk about a concept known as the payback period. This is a simple tool that helps businesses determine how long it will take to recoup their initial investment. We will also discuss some of the drawbacks of the payback period method of investment analysis. #business #finance #analysis