Payback period in capital budgeting refers to the time required to recoup the funds expended in an investment, or to reach the break-even point. [1]
For example, a $1000 investment made at the start of year 1 which returned $500 at the end of year 1 and year 2 respectively would have a two-year payback period. Payback period is usually expressed in years. Starting from investment year by calculating Net Cash Flow for each year:
Then:
Accumulate by year until Cumulative Cash Flow is a positive number: that year is the payback year.
^Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language: Marketing Activities and Metrics Project.
Paybackperiod in capital budgeting refers to the time required to recoup the funds expended in an investment, or to reach the break-even point. For example...
The discounted paybackperiod (DPB) is the amount of time that it takes (in years) for the initial cost of a project to equal to the discounted value of...
Look up payback in Wiktionary, the free dictionary. Payback may refer to: Revenge, a harmful action against a person or group in response to a grievance...
would be worth much less today to that same person (lender), even if the payback in both cases was equally certain. This decrease in the current value of...
Cutoff period is a term in finance. In capital budgeting, it is the period (usually in years) below which a project's paybackperiod must fall in order...
Simplified and hybrid methods are used as well, such as paybackperiod and discounted paybackperiod. Cash flows are discounted at the cost of capital to...
the paybackperiod. The savings in energy costs are often used to pay back the capital investment of the project over a five to twenty years period or...
Badhaadhiinaa), a political party in Ethiopia Paybackperiod, in capital budgeting refers to the period of time required for the return on an investment...
Florida the paybackperiod could easily be 7 years or less rather than the 12.6 years indicated on the chart for the United States. The paybackperiod is shorter...
and deliver outlet temperatures of 45–60 °C (113–140 °F). The short paybackperiod of transpired collectors (3 to 12 years) makes them a more cost-effective...
energy savings in 2–10 years for residential systems in the US. The paybackperiod for larger commercial systems in the US is 1–5 years, even when compared...
Passport Direct Participation Program, a financial security Discounted paybackperiod Digital Photo Professional, Canon software Director of Public Prosecutions...
which, parenthetically, is a significant factor in determining the paybackperiod for the capital project when discounting forecast savings and spending...
Renewables: 'The PaybackPeriod' Archived 2014-11-13 at the Wayback Machine. Renewable Energy World (2010-04-19). Retrieved on 2012-10-01. "It's payback time for...
savings provides a "simple payback", the number of years for the system to pay for itself. The shorter the calculated paybackperiod, the more likely it is...
project coincides with the concession period. A BOO scheme involves large amounts of finance and long paybackperiod. Some examples of BOO projects come...
for shipping companies to consider the investment due to the lengthy paybackperiod." Interest in rotor sails revived in the 1980s, as a way of increasing...
develop, and if it can be completed in a given time period using some methods like paybackperiod. Time feasibility is a measure of how reasonable the...
health company Essity received a Return on Investment of 74% with a paybackperiod of less than 3 months from their work with InnoCentive". Another study...
return Modified internal rate of return Discounted paybackperiod Equivalent annual cost Cut off period PVGO Mergers and acquisitions related considerations:...
present value Adjusted present value Equivalent Annual Cost Paybackperiod Discounted paybackperiod Internal rate of return Modified Internal Rate of Return...
billion, roughly triple its initial cost projections. As a result, the paybackperiod was expected to begin about seven years later, around 2018. One reason...
years (100% divided by 10%). If the capitalization rate were 5%, the paybackperiod would be twenty years. Note that a real estate appraisal in the U.S...
10% to 36%, the upper limit on the loan amount is $25,000, and the paybackperiod ranges from 1 to 48 months. Affirm says it doesn’t charge compound interest...
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