Categories: Financial

Is Payback Period a Financial or Accounting Practice? A Guide

Payback period is an essential concept within financial and accounting practices that refers to the specific length of time required for investments to be recovered. It is often used to measure the profitability of an investment, and can be calculated by determining the amount of time needed for the cash inflows of a project to cover its cash outflows. Payback period assessing an investment’s long-term profitability and potential risks.

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