Ayesha Sharma

Business problems are often attributed to the owners' faults, but they typically stem from resource scarcity, particularly capital and investment. Entrepreneurs use methods like financial modeling and the payback period to address these challenges. The payback period method calculates the time required for an investment to generate enough profits to cover its initial cost. This article explores the method's value and limitations, fundamental financial concepts, factors influencing investment decisions, and the accounting basics necessary for payback period analysis.
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