Why to analyse the period when Owner's capital will be recovered?
Investors are interested first in avoiding risk of not recovering their investment, then in the firm's liquidity and solvency and then in profitability. One important measure of risk mitigation is the speed by which Initial Capital can be recovered or the time needed for investors to have their capital back.
Payback defines the time required to recover of the original investment and indicates how long it will take for equity to be equal to the original investment. Investors are interested in
Subscribe today and learn the fundamentals
It seems you don't have access to the exclusive content of The Course.
In order to gain access to the content of The Course you will have to register with EntreprenAble. Membership with EntreprenAble will also give you access to our interactive Business Game and Accounting Simulations.
Subscribe today and get:
- Unlimited website access to The Course
- Optimized view for Desktop, Tablet and Mobile devices
- Free 7-day, no obligation trial - normally £15
Test-drive the system for free