The first thing I would want to know before making an investment opportunity I would want to know the pay back period. This is the easiest calculation to make for the different techniques and gives me an idea of when I would break even and “get my money back” for the investment. This would be the first technique I would use but not the only one. I would also use the net present value technique. This technique would inform me on the returns I should expect. This approach could also be used in the reverse way, I could use it to only look at investments that meet my Return On Investment criteria before looking at particular investments.
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