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payback period analysis probably the most useful in the industry also if you take any standardized test this question is there there are two kinds of payback period analysis one is simple payback period analysis where you simply divide the capital investment divided by the yearly cash flow so in this investment for example you are doing a rental car business and youamp;#39;re buying a car for 25 000 and each year youamp;#39;re getting 7 000 back so uh just use a negative sign to make it positive um so itamp;#39;s gonna take about three and a half years um to get your investment return by based on the simple payback period analysis in the united states three years or less payback period is desired so you will not be actually considering this project because itamp;#39;s more than three years