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.