The minimum rates of return or a minimum cash flow payback period are two standards established in capital investment analysis.

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The minimum rates of return and minimum cash flow payback period are two widely used standards in capital investment analysis. The minimum rate of return helps to determine the rate of return required to be earned on a particular investment to make it worthwhile, while the minimum cash flow payback period helps to determine the time needed for the investment to start generating cash inflows that can offset the initial investment costs.

The Minimum Rates of Return or a Minimum Cash Flow