Method of evaluating the period of time it would take for the company to get the amount of return equivalent ot its initial investment. Usually, pay back periods should be lesser. It allows investors to calculate whether their investment is worthwhile or not.
Link to This DefinitionDid you find this definition of PAYBACK PERIOD METHOD helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary