Payback period: Difference between revisions
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imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Expand definition.) |
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The total period before the cumulative net cash inflows from an investment are sufficient to have fully paid back the initial investment. | The total period before the cumulative net cash inflows from an investment are sufficient to have fully paid back the initial investment. | ||
All other things being equal, the sooner - or shorter - the payback period, the lower risk and the more attractive the proposed investment appears to be on this measure. | |||
== See also == | == See also == | ||
* [[Investment]] | * [[Investment]] | ||
* [[Internal rate of return]] | |||
* [[Net present value]] | * [[Net present value]] | ||
* [[Payback]] | * [[Payback]] | ||
Revision as of 16:40, 17 October 2022
The total period before the cumulative net cash inflows from an investment are sufficient to have fully paid back the initial investment.
All other things being equal, the sooner - or shorter - the payback period, the lower risk and the more attractive the proposed investment appears to be on this measure.
