PAYBACK PERIOD METHOD
\pˈe͡ɪbak pˈi͡əɹɪəd mˈɛθəd], \pˈeɪbak pˈiəɹɪəd mˈɛθəd], \p_ˈeɪ_b_a_k p_ˈiə_ɹ_ɪ__ə_d m_ˈɛ_θ_ə_d]\
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Method of evaluating the period of time it would take for the company to get the amount of return equivalent ot its initial investment. Usually, pay back periods should be lesser. It allows investors to calculate whether their investment is worthwhile or not.
By Henry Campbell Black
Word of the day
hydromorphic
- [Greek] Structurally adapted to an aquatic environment, as organs of water plants.