Payback Period Calculation for Equipment Replacement

Payback Period
Knowledge Center

 

Next Topic

Payback Period > Forum > Payback Period Calculation for Equipment Replacement

Payback Period Calculation for Equipment Replacement
Norbert Lepathy, Manager, Seychelles, Member
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….
 

 
Helpful Ideas for Payback Period with Zero Cash Flow
Robert Fullsome, Accountant, United States, Member
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….
 

     
Special Interest Group Leader

Interested? Sign up for free.


Payback Period
Summary
Forum
Best Practices


Payback Period
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.1 - Last updated: 25-8-2019. All names ™ of their owners.