Issue link: https://iconnect007.uberflip.com/i/1529411
68 PCB007 MAGAZINE I NOVEMBER 2024 Break-even time (BET) is the length of time it takes an entity to recover its investment in a new product. More specifically, a project's BET is defined as the length of time from the begin- ning of the project until the cumulative net profits from sales (discounted dollars) result- ing from this investment equals the cumulative new project investment (Figure 1). Some traditional financial methods (e.g., net present value and internal rate of return) are considered the norm for use as product devel- Break-even Time (BET) opment process metrics. However, within the context of high-technology businesses, time- to-market is of utmost importance. us BET, which highlights how fast these new technolo- gies and products are brought to market, was created as the primary product development metric. is does not mean that you should not calculate NPV. It can be particularly useful if you are interested in understanding the impact of staffing levels or leveraging existing technol- ogy on the ROI of your project. Editor's note: The following is an excerpt from Happy Holden's 24 Essential Skills for Engineers. Feature Article by Happy Holden, I-CONNECT007 Figure 1: Break-even time (BET) example. (Source: HP BET Manual)