Chapter 3

Is a simple measure worse than a correct one?

Thước đo đơn giản có tệ hơn thước đo đúng?

The chapter's question

How many months until this pays for itself?

Big idea

Payback period is not a perfect measure, but it is one everyone understands.

In this chapter

  1. Part 3.1

    Calculating Payback

    Am I calculating in cash flow or in profit?

  2. Part 3.2

    Your Company's Threshold

    How many months is the threshold we accept?

  3. Part 3.3

    Money Now and Money Later

    Why is a dong three years from now not a dong today?

  4. Part 3.4

    Comparing Two Options

    When two options differ, what do I compare them on?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of One Big Investment is free to read right here.

Read in Conan School

Chapters of One Big Investment

  1. 1.Is the purchase price the real price?
  2. 2.Should benefits I can't measure count as zero?
  3. 3.Is a simple measure worse than a correct one?
  4. 4.If I'm wrong, how bad does it get?
  5. 5.Who checks whether last year's investment paid off?