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ADHAAR
The payback period helps to answer the question “how long will it take to make back the money spent on the investment?” This is beneficial information to decision makers because out-year benefits are often less certain than benefits that occur early in the life cycle. The payback period represents the time required for the cumulative savings to equal to the cumulative value of investment. The payback period measures the time (i.e., years, months) needed to recover the initial investment and break even.
The payback period metric identifies projects that generate benefits occurring early in the life cycle. NASA decision makers must then decide if the payback period is appropriate in the context of the organization’s other investment opportunities.
The payback period metric identifies projects that generate benefits occurring early in the life cycle. NASA decision makers must then decide if the payback period is appropriate in the context of the organization’s other investment opportunities.
Posted in: BUILDING ECONOMICS
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