Imagine investing in a promising project, only to realize years later that it’s taking far longer than expected to recoup your initial outlay. Wouldn’t it have been invaluable to know upfront how long ...

Definition: An investment’s payback period in years is equal to the net investment amount divided by the average annual cash flow from the investment. What it means: How long will it take to get my ...

The payback period is how long it will take to recover money invested in a project, and the so-called straight-payback-period calculation is the simplest way of determining the project's investment ...

Imagine you bought a vending machine for $2,000. This vending machine made you profits of $100 a year, after all expenses. It would take 20 years to recoup your initial investment. The amount of time ...

The payback periodmeasures how long a project or investment takes to repay any initial outlay. For example, if you spend £1,000 on shares, then receive a dividend of £200 at the end of every year, the ...