Valuation & Investment
Payback Period
Has Calculator
What it means
How long until cumulative cash flows recoup the investment.
Why it matters
Fast, intuitive risk screen — but it ignores time value and post-payback cash flows.
How to calculate — with Cawan's Shoes
Cawan's factory: $10M / $3M = 3.33 years.
What's at stake if you ignore this
Using payback alone favors short-sighted projects.