Definitions for

**"payback period"****Related Terms:**Payback, Holding period return, Cumulative return, Time-weighted rate of return, Cash flow projection, Cash flow forecast, Time horizon, Investment return, Return, Total return, Turnover, Cash flow, Average annual total return, Annualized return, Net cash flow, Historical yield, Holding period, Return on investment, Cash flow statement, Cash-on-cash return, Return, Cash flow, Cash budget, Internal rate of return, Burn rate, Net present value, Discounted cash flow, Roi, Cash flow analysis, Cash position, Operating cash flow, Terminal value, Net investment, Cash flow from operations, Time value of money, Free cash flow, Negative cash flow, Annual rate of return, Return of capital, Profitability index, Ffo, Investment horizon, Cash flow budget, Funds from operations, Return on invested capital, Turnover ratio, Opportunity cost of capital, Cost of capital, Accumulation, Average annual return

The amount of time taken to break even on an investment. Since this method ignores...

np - Number of years to recover the initial investment and a stated rate of return (5.6).

The time required for the money saved and/or the income generated by a project or product to equal its initial investment cost; determined as part of a life-cycle cost analysis.

The number of years it takes for a project's net cash flows to recover the net investment.

The length of time required for an asset to generate cash flows just enough to cover the initial investment outlay.

The length of time taken for the net cash inflow from a new project to cover the initial investment of the project.

A critical calculation in these times of fast-changing technologies, payback period is simply the point at which you expect the yearly benefits of the project to cover the costs.

This is one of the more popular method used in making capital budgeting decisions. It measures the length of time needed to recover the cost of an investment from the cash flows generated by the investment.

The time it takes for an investment to generate sufficient returns to payback its cost.

The number of years required to return an investment outlay. The period required for a project to repay its initial outlay. This is usually projected on the assumption that any further recoveries are then pure profit.

The time taken to recover the initial investment. A seriously flawed method of evaluating investments.... more on: Payback period

The time it will take for the income generated by a property to return the investment (down payment).

The length of time it takes to recover the initial cost of a project, without regard to the time value of money. For example, if a project costs $100 and brings in $20 per year, the payback period is 5 years.

the number of years required to recover the initial cash investment.

The length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates.

(2) The number of years required to pay back the purchase price of the investment, excluding entry/exit costs.

the amount of time it takes to achieve a full return on an investment. For instance, if a high- efficiency air conditioner would cost you $300 more to purchase than a lower-efficiency model but would save you $100 a year in operating costs, your payback period on the extra $300 investment would be three years.

The period, usually expressed in years, which it takes the cash inflows from a capital investment project to equal the cash outflows.

The length of time that will pass until the net benefit of the project becomes positive.

The amount of time required before the savings resulting from an energy producing system equals the cost of the system, typically 5 to 10 years. This number has been steadily decreasing as alternative energy systems become more popular and more practical.

The amount of time required for an organization to recapture an initial investment. This may apply to an entire business operation or an individual project.

The length of time required for an investment to recover the initial cash outlay.

In capital budgeting, the number of years that must pass before the earnings a product produces equal the initial investment in the product.

The amount of time required for cumulative estimated future income from an investment to equal the amount initially invested. It is used to compare alternative investment opportunities.

Time taken for a project/investment to recover its initial investment.

The length of time it takes for future net positive cash flows to equal the initial investment. Projects are accepted if the payback period is less than some management guideline. The greatest asset of the payback is its simplicity. However, it ignores all cash flows and the time value of money. On the other hand, the discounted payback reflects the length of time it takes for the discounted future net positive cash flows to equal the initial investment(Brown, 1994).

The amount of time that it takes the company to generate enough profit to gain back the initial investment in the company.

The time required for the cumulative operational saving of a DSM (or other) option to equal the investment cost of that option.

The number of time periods up to the point at which cumulative revenues exceed cumulative costs and, therefore, the project has turned a profit. (PMI)

Payback period in business and economics refers to the period of time required for the return on an investment to "repay" the sum of the original investment. For example, a $1000 investment which returned $500 per year would have a two year payback period. It is intuitively the measure that describes how long something takes to "pay for itself"; shorter payback periods are obviously preferable to longer payback periods (all else being equal).

Poisson Distribution Prestige pricing

The amount of time it takes to pay back the fees for obtaining a loan on a property.

The amount of time you have to make payments on your loan.

See Simple Payback.