The return on investment is to calculate the amount of income and depreciation accrued under normal production and operation conditions after the project is put into productionAmortization of intangible assetsThe amount of time required to recover the total investment of the project, compared with the industry benchmarkPayback periodOne way to analyze the financial benefits of project investment by comparisonStatic analysis method。
Chinese name
Return on investment
Foreign name
Return on investment
Properties
static analysis
Description
Economic terminology
definition
Payback periodThe indicator measures the speed of recovering the initial investment.The basic selection criteria are: when there is only one project available for selection, the payback period of the project should be less than the highest standard specified by the decision-maker;If there are multiple projects to choose from, on the premise that the payback period of the project is less than the highest standard required by the decision-maker, the project with the shortest payback period should also be selected.
