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Calculation of Pay back period
Remmy
How do we calculate payback period when the returns / cashflows are different each year?
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Comment on payback period Tecnique
Tichakunda Gumbo Your payback period calculation formular is somehow too generalised in that it assumes that all projects will have equal annual cashflows.What about ...  |
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Payback Period if annual cashflows vary?
Jaap de Jonge, CEO, Netherlands, Editor In case the annual cashflows are not the same, the formula is still valid.
Suppose the same project is costing $200.000, but now the annual cashf... |
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Good resource
Peter Hansen I found that this was a very useful website with relevant explanations and examples. Keep up the good work!... |
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Calculating payback period
Herson Deleon Yes, it is difficult if the annual income of a certain company is not always constant. Obviously you will use a lot of operation just to get the accur... |
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Pay back Period
Ade Osunsanmi I think the the pay back period is just a cumulative sum of money to PAY BACK the initial investment . If your cash flows in the example you gave are ... |
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Payback period
Gabriel Hogan Payback period is a great method but if you are considering investments in innovation it has its drawbacks, namely it does not account for the cost (l... |
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Payback Period
Mukela Namushi Mubano, Accountant, Zambia, Member I do not think the formula dictates that the cash flows should be the same. Sometimes they may not be. The payback period is the period it takes for o... |
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Many Terms
Azzam Ali, Analyst, Saudi Arabia, Member I observe that there are many methods calculating pp, and I wonder which one is the accurate one. Also sometimes we use many different terms ( net pro... |
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Special Interest Group Leader
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Payback Period
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