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What is Payback Period?

Tuesday, May 14, 2019, 3:58 PM

The Payback period is the amount of time required to recover the initial business investment. The Payback period is a method of capital budgeting. While comparing two or more investments, the project managers and investors use this method to calculate the amount of time taken to recover the initial investment. Projects with shorter Payback period help investors earn profits easily.

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