What is Payback Period? Formula + Calculator


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The one-word payback is a noun and an adjective. 1 It does not function as a verb. The corresponding verb is pay back —two words. 2 So when you get payback from someone, you make them pay back what they owe. In English, we have many compound words similarly derived from phrasal verbs, and the one-word forms almost never gain acceptance as verbs.


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Payback Period How to Use and Calculate It BooksTime

• The payback period is the estimated amount of time it will take to recoup an investment or to break even. • Generally, the longer the payback period, the higher the risk. • There are two formulas for calculating the payback period: the averaging method and the subtraction method.


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Payback Period: The payback period is the length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of whether.


What Is a Payback Period? How Time Affects Investment Decisions

Payback definition: . See examples of PAYBACK used in a sentence.


What is Payback Period? Formula + Calculator

PAYBACK'S A BITCH definition: 1. If a person says payback's a bitch, they mean that something bad has happened as a result of…. Learn more.


What is Payback Period? Formula + Calculator

Payback period, which is used most often in capital budgeting, is the period of time required to reach the break-even point (the point at which positive cash flows and negative cash flows equal each other, resulting in zero) of an investment based on cash flow. For instance, a $2,000 investment at the start of the first year that returns $1,500.


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payback: 1 n the act of taking revenge (harming someone in retaliation for something harmful that they have done) especially in the next life Synonyms: retribution , vengeance Type of: retaliation , revenge action taken in return for an injury or offense n financial return or reward (especially returns equal to the initial investment) Type of:.


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Discounted Payback Period Formula and Calculation

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What Is a Payback Period?

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How to use payback in a sentence. requital; a return on an investment equal to the original capital outlay; also : the period of time elapsed before an investment is recouped… See the full definition


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Payback analysis is a mathematical method finance professionals and investors can use to determine how long it may take to start, complete and pay for a capital project. This method can provide organizations with the payback period and the value of a project. Accountants, investors and other professionals may use this tool in business planning.


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