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Summary

In this chapter, you learned about payback periods, which quantify the length of time required to break even on an investment. The concepts of future value, present value, and net present value set the stage for discounted payback periods, which can vary as the value of money changes over time. And you learned how to use a very powerful add-in, the Solver, to optimize a variety of input values in order to achieve an outcome that you specify.

Each of these concepts and tools plays a part in developing a business case that conforms to your decision criteria. This chapter also described how to save different combinations of input values in scenarios, so that you can revisit them and eventually select the best combination to achieve your plan's objectives. The next chapter takes up the topic of sensitivity analysis, which enables you to quantify the magnitude of changes to the case's outcomes as you manipulate changes to its inputs.


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