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Pay Back Period Method. In order to compute the payback period of the equipment we need to workout the net annual cash inflow by. Now the amount of investment required to purchase the equipment would be divided by the amount of net annual.
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Payback period is the time required to recover the cost of total investment meant into a business. We go through some Payback Period Examples and ca. It means that the company gets additional earnings or savings if the project is implemented.
To calculate a more exact payback period.
In order to compute the payback period of the equipment we need to workout the net annual cash inflow by. Enter your name and email in the form below and download the free template now. Since the machine will last three years in this case the payback period is less than. Cash payback period is the expected period of time that will pass between the date of an investment and the full recovery in cash or equivalent of the amount invested.
