Reveal the appraisal method boosting your investment returns
Payback Period: A Quick Assessment Tool
The payback period method calculates the time it takes for an investment to recoup its initial cost. Although it doesn't account for the time value of money, it's a straightforward way to assess risk by determining how quickly an investment can become profitable. This method is often used in conjunction with other appraisal techniques to provide a comprehensive view of an investment's potential3.