Capital Budgeting Techniques in English - NPV, IRR , Payback Period and PI, accounting
To determine how to calculate payback period in practice, you simply divide the initial cash outlay of a project by the amount of net cash inflow that the.
When cash flows are uniform over the useful life of the asset, then the calculation is made through the following formula. Payback period Formula = Total. Dec 27, · Example 1: Let's say Jason wishes to buy a car from a dealership. The car costs $22, His bank approves a car loan, which allows Jason to buy the car.