| Article ID: | iaor20013178 |
| Country: | Germany |
| Volume: | 21 |
| Issue: | 1/2 |
| Start Page Number: | 287 |
| End Page Number: | 303 |
| Publication Date: | Jan 1999 |
| Journal: | OR Spektrum |
| Authors: | Kruschwitz L., Lffler A. |
| Keywords: | investment |
An investor using the payback method needs a criterion which will separate the good projects from the bad. This criterion should be compatible with the net present value concept. We call it the critical payback period and prove that such a period exists.