Desde Investopedia

TERM OF THE DAY

Payback Period The payback period is the length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of whether to undertake the position or project, as longer payback periods are typically not desirable for investment positions. The payback period ignores the time value of money, unlike other methods of capital budgeting, such as net present value, internal rate of return or discounted cash flow.

Breaking it Down: Much of corporate finance is about capital budgeting. One of the most important concepts that every corporate financial analyst must learn is... Read More