Payback Period

Input(s)

SN: Cumulative Negative Net Cash Flow (NCF) Years (year)

PN: Positive NCF (currency unit)

NN: Negative NCF (Positive Numeric Value) (currency unit)

Output(s)

PP: Payback Period (year)

Formula(s)

\mathrm{PP}=\mathrm{SN}+\frac{1}{\mathrm{PN}+\mathrm{NN}} * \mathrm{NN}

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 6, Page: 306.

Payback Period

Input(s)

Output(s)

Formula(s)

Reference(s)

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