Payback Period

Filed Under: Business

1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).

Source:

In capital budgeting, is the length of time needed to recoup the cost of Cap­ital Investment. The payback period is the ratio of the initial investment (cash outlay, regardless of the source of the cash) to the annual cash inflows for the recovery period.

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