Harvard Business Review

APRIL 18, 2016

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. What is payback period? ” The shorter the payback period, the better. Knight provides an example.

Payback Period 8

Payback Period Net Present Value ROI Rate of Return 8

Harvard Business Review

JUNE 22, 2015

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. BEQ = 200 units. It will not breakeven.

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

FEBRUARY 7, 2012

For example] the longer term payback on solar helps us get to scale down the road.". It also recognizes that, in the meantime, operational managers will gain valuable experience and knowledge about how to optimize the new power systems. We worship internal rates of return (IRR) to our detriment.

ROI 13

ROI IRR Power Payback Period 13