The Payback Method
This video explains how to use the payback rule to make decisions about whether to accept projects in corporate finance. The video uses a comprehensive example to demonstrate how to calculate the payback period and compare it to the required time frame. The video also points out some of the weaknesses of the payback method and notes that the chief advantage of the payback rule is its simplicity.
Here's how to calculate the payback period if the payback period is not an integer:
• How to Calculate the Payback Period
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