Payback Period - Basics, Formula, Calculations in Excel (Step by Step)
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2 سال پیش
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Payback Period Tutorial - Chapters
Payback Period Tutorial - Chapters
00:00 - Introduction
01:00 - What is Payback Period?
02:40 - Payback Period Formula & Calculation (Equal cash flows)
04:23 - Payback Period Formula & Calculation (Unequal cash flows)
09:10 - Using Payback Period to Compare Multiple Projects
10:55 - Limitations of Payback Period
In this video, we will discuss one of the methods of Capital Budgeting, i.e.,
Payback Period, along with how it works, its calculations, and its limitations.
What is Payback Period?
Payback Period is the time taken to recover a business’ initial investment. In
simple terms, it refers to the time taken by a project to reach a level where
there is no loss no profit i.e. breakeven point.
Formula for Payback Period = Initial Investment/Net Annual Cash Inflow
Limitations of Payback Period:
1. Time Value of Money is neglected
2. The amount of cash inflows generated post the payback period is
disregarded.
#paybackperiod, #wallstreetmojo, #paybackperiodfomula
To learn more about Payback Period, you may look at this article - https://www.wallstreetmojo.com/paybac...
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00:00 - Introduction
01:00 - What is Payback Period?
02:40 - Payback Period Formula & Calculation (Equal cash flows)
04:23 - Payback Period Formula & Calculation (Unequal cash flows)
09:10 - Using Payback Period to Compare Multiple Projects
10:55 - Limitations of Payback Period
In this video, we will discuss one of the methods of Capital Budgeting, i.e.,
Payback Period, along with how it works, its calculations, and its limitations.
What is Payback Period?
Payback Period is the time taken to recover a business’ initial investment. In
simple terms, it refers to the time taken by a project to reach a level where
there is no loss no profit i.e. breakeven point.
Formula for Payback Period = Initial Investment/Net Annual Cash Inflow
Limitations of Payback Period:
1. Time Value of Money is neglected
2. The amount of cash inflows generated post the payback period is
disregarded.
#paybackperiod, #wallstreetmojo, #paybackperiodfomula
To learn more about Payback Period, you may look at this article - https://www.wallstreetmojo.com/paybac...
Subscribe to Our Channel -
Youtube ► @wallstreetmojo
LinkedIn ► LinkedIn: mycompany
Facebook ► Facebook: wallstreetmojo
Instagram ► Instagram: wallstreetmojoofficial
Twitter ► Twitter: wallstreetmojo
2 سال پیش
در تاریخ 1401/02/08 منتشر شده
است.
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