Know When It's Payback lime

摘要

Making a financial decision today is just as difficult as ever or perhaps more so, since there are so many more choices today than ever before. Historically, you may have evaluated purchase decisions based on the amount of money you anticipate saving by making the purchase. For instance, let's say you want to move from handwritten tickets to a computerized system. The cost of one station is about $5,000―that's your investment. You anticipate a savings of about $500―that's the amount a recently terminated employee stole. If that were the only savings you anticipated from installing a point-of sale (POS) system, 10 such losses in the next 10 years would allow you to break even on your investment. The math is: $5,000 / $500 = 10 years.