Simple payback can cost you profits and what is the better way ratio

By |2020-06-03T10:33:18-04:00September 17th, 2018|Categories: Business value, Energy management, Interesting Reads, Profitability|Tags: , , |0 Comments

Simple payback period is routinely used as an ultimate ratio when it comes to selecting between energy projects. This practice may cost your company money in missed opportunities. Simple payback period (SPP) is the simplest way to assess profitability of an investment project. Simply divide first year cost by first year savings and you get [...]