Payback period, Financial Management

Can some one tell me how to calculate payback period and which formula i used to calculated payback period?



Posted Date: 2/14/2013 12:18:07 AM | Location : United States

Payback period:

The length of time required to get well the cost of an investment. The payback period of a provided investment or project is an important determinant of whether to undertake the project or position, as longer payback periods are naturally not desirable for investment positions.

Calculated as:

Payback Period = Cost of Project / Annual Cash Inflows

Posted by Laura | Posted Date: 2/14/2013 12:19:03 AM

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