Calculation of Pay back period

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Calculation of Pay back period
Remmy
How do we calculate payback period when the returns / cashflows are different each year? (...) Read more? Sign up for free

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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 those with different annual cashflows.?

  Payback Period if annual cashflows vary?
Jaap de Jonge, Editor, Netherlands
  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 cashflows are: $30.000 (yr 1), $40.000 (yr 2), $50.000 (yr 3), $40.000 (yr 4), $20.000 (yr 5), $20.000 (yr 6), and $50.000 (yr 7).
After 6 years the total of all cash inflows equals the costs (investments) in the project. Therefore the Payback Period of our project is 6 years.

  Good resource
Peter Hansen
  I found that this was a very useful website with relevant explanations and examples. Keep up the good work!

  Calculating payback period
Herson Deleon
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  Pay back Period
Ade Osunsanmi
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  Payback period
Gabriel Hogan
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  Payback Period
Mukela Namushi Mubano, Accountant, Zambia, Member
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  Many Terms
Azzam Ali, Analyst, Saudi Arabia, Member
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  Sample Payback Period Computation with Different Annual Cashflow
Aser T. Alas, Jr., Philippines, Member
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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


Payback Period
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