The amount of time taken to break even on an investment. Since this method ignores the time value of money and cash flows after the payback period, it can provide only a partial picture of whether the investment is worthwhile.
Related information about payback period:
- Payback period - Wikipedia, the free encyclopedia
Payback period in capital budgeting refers to the period of time required for the return on an investment to "repay" the sum of the original investment.
- Payback Period Definition | Investopedia
The length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of whether to ...
- Payback Period
The Payback Period represents the amount of time that it takes for a Capital Budgeting project to recover its initial cost. The use of the Payback Period as a ...
- How do you calculate the payback period? | AccountingCoach.com ...
The payback period is calculated by counting the number of years it will take to recover the cash invested in a project. Let's assume that a company invests.
- Payback period, defined, calculated, and explained with examples
21 hours ago ... Payback period is illustrated and calculated as a financial metric for cash flow analysis, like NPV, ROI and IRR, for cost-benefit-analysis and ...
- Payback Period explained
Full explanation of this ratio to recovering your initial costs of investments, where and how it can be used. Includes links to more financial models financial ratios ...
- Payback Period - Financial Dictionary - The Free Dictionary
In project evaluation and capital budgeting, the payback period estimates the time required to recover the principal amount of an investment. Because the ...
- Payback Period Formula | Examples | Advantages and Disadvantages
Payback period is the time in which the initial cash outflow of investment is expected to be recovered from the cash inflows generated by the investment.