~ayoff periods Is erroneous. The comparison of alI variants Is carried out with a single base whereas It Is required to ·carry out consecuttve comparison of alI variants in pairs. The calculation procedure In this case c~sists tn maximum possible approximation of estimated efficiency of capital Investment to the normative efficiency. Moreover, one has to take account of conventional meaning of "payoff period" notion. It iS not by accident that this notion Is written In inverte~ ccrras. usJaiiy It signifies a period of time during which real accumulated saving of running costs becomes· equal to Initial· volume of ad d I t I on a I c a p i t a I I n v e s tm en t • . But every ec on om I s t know s t h at saving received during the first year Is considerably higher by Its real value than the same saving received one or more years 'later. From the standpoint of the national economy this growth of value Is determined by the posslbil ity of multiple use of saved resources In the reproduction process. In view of this there will be no Integral saving' "counter-balancing" additional capIta 1 Investment. That Is why the words "payoff per lod" do not bear the Imp I left meaning. These reasons lead to usual substitution of "payoff period" Indicator with Its more "rei i ab I e" equ l va I ant -annua I reduced cO'Sts. It Is necessary to under I lne once again that the essence of these two indicators Is the same as they reflect co(llparatiyi)_efticlency of one variant of capital investment with the other. It is only with these indicators (and not general efficiency Indicators) possible to select the best variant of capital Investment· and new technology. And this Is not by accident as the comparative efficiency 
**Analysis**
The text discusses the concept of "payoff period" and its limitations in evaluating the efficiency of capital investments. It highlights the importance of considering the growth of value of saved resources over time and the need for a more realistic indicator to assess the efficiency of capital investments. The text does not mention specific industries, sectors, or geographic locations, but rather focuses on the theoretical and conceptual aspects of economic efficiency.

**Category**
Industry, Science and technology