Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of ...

The payback method of evaluating capital expenditure projects is very popular because it's easy to calculate and understand. It has severe limitations, however, and ignores many important factors that ...

Small businesses frequently use the "payback" method when deciding which projects to pursue. This method is easy to understand, and its relatively short-term focus suits a risk-averse business owner, ...

Discover how the PEG payback period helps gauge investment potential by estimating the time needed to double stock investments. Learn its formula and limitations.

The payback period refers to the amount of time it takes to recover the cost of an investment. Moreover, it's how long it takes for the cash flow of income from the investment to equal its initial ...

The period of time taken for the return on investing in a new product to cover the sum of the investment into the product and start to generate profits. The payback period is deemed a vehicle of ...