Payback Period Method Example

This video shows an example of how to calculate the payback period for an investment.
The payback method is a decision rule that says a project should only be accepted if the initial investment is recovered within a certain period of time. For example, a company might say that it only invests in projects that pay back within 18 months. The payback period for a project would be calculated and then compared to the threshold set by the company.-
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[@Justin-tv6tq]

Shouldn't the payback period take the time value of money and discount rate into account?

[@jdm132]

Makes so much more sense now that I kinda feel stupid.

[@rez752]

Good explanation

[@dianushka77amyw]

Thank You so much! You saved me.

[@Edspira]

No problem!

[@jdm132]

Thanks!

[@fferd69]

Good video mr. 👌👍