Payback Period Calculation for Equipment Replacement

Payback Period
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Norbert Lepathy
Manager, Seychelles
🔥NEW How to calculate payback period when a company is investing in new equipment to replace old ones. For example, an airline is investing in replacing their ground power units for aircraft engine start up. The new equipment will not bring any revenues. Thanks for your help…. (...) Read more? Sign up for free

  Robert Fullsome
Accountant, United States
 

Helpful Ideas for Payback Period with Zero Cash Flow

Norbert, in case an investment doesn't provide cash flow, you can either
A. Calculate the savings provided by the investment and calculate the payback period while treating the savings as the cash flows, or
B. Include the purchase of these pieces of equipment as part of a larger project.
Hope this helps….

 

More on Payback Period
Summary
Forum
Calculating Payback Period without Annual Cash Flows
How to Calculate the Payback Period with a Spreadsheet?
Payback Period Calculation for Equipment Replacement
Best Practices
Calculation of Pay back period
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