Payback Period
Content
Definition
The Payback Period is the time required for an investment to generate cash flow or profits equivalent to its cost, used to evaluate the feasibility of a project.
Usage and Context
The payback period is the time needed to recover an investment`s initial cost.
Frequently asked questions
- Is the payback period the amount of time required for an investment to generate cash flows to recover its initial cost? Yes, the payback period is the time needed for an investment to recover its initial cost.
- What is the payback period of the investment project? The payback period is the time needed for an investment to recover its initial cost.
- What is the payback period method for evaluation of project? The payback period method calculates the time needed to recover the initial investment.
Benefits
The payback period helps assess the time required to recover an investment, aiding in financial planning.
Conclusion
The Payback Period helps assess the time required to recover an investment.
