Media List
How Payback Period Reveals Hidden Cash Flow Dangers
The payback period, a common metric for assessing investment viability based on time to recoup initial costs, presents several drawbacks in financial decision-making. This overview highlights these limitations, emphasizing the metric's oversight of post-payback profitability, the neglect of the time value of money, preference for short-term gains, ignorance of periodic cash flow variability, and potential misalignment with strategic goals. Companies are advised to complement the payback period with metrics like Net Present Value (NPV) and Internal Rate of Return (IRR) to avoid misleading conclusions and ensure financial stability.
Why Psychological Pricing Thresholds Drive Purchase Decisions
Explore how psychological pricing strategies influence consumer perception, enhance perceived value, and drive profitability. Learn about strategies like perceived value optimization, customer segmentation, anchoring, emotional triggers, and margin enhancement.
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