Reinvesting in the Business
» Reinvesting in the Business, Volume 3, Issue 3, 2003
When I use the term MAJOR investment in your business, I mean an investment or series of investments where the total purchase price amounts to around 5 percent or more of your annual gross receipts.
If respondent makes MAJOR investments in land or structures AND uses the payback period to assess their viability.
7b. When you make a MAJOR investment in land or structures for your business, what is the maximum number of years it should take for the investment to pay for itself?
| Response | ||||
|---|---|---|---|---|
| 1 | 5 years or less | 22 | ||
| 2 | 6 - 10 years | 30 | ||
| 3 | 11 - 20 years | 16 | ||
| 4 | More than 20 years | 2 | ||
| 5 | Varies | 2 | ||
| 6 | Not applicable - haven't made such an investment | 22 | ||
| 7 | DK/Refuse | 6 | ||
| Total (%) | 100 | |||
| N | 139 | |||
Notes: Seventy-two (72) percent of small employers who make major investments in land or structures and use the payback period to assess a major investment in land and structures require its payback period to be 10 years or less (Q#7b).
