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Finance

Payback Period Calculator

Estimate how long it will take for an investment to generate cash inflows sufficient to recover its initial cost.

Inputs

11,00,00,00,000
11,00,00,00,000

Calculation Results

Payback Period

4 Years

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Formula & Mathematical Explanation

Payback Period=Initial InvestmentAnnual Cash Inflow\displaystyle \text{Payback Period} = \frac{\text{Initial Investment}}{\text{Annual Cash Inflow}}

The payback period represents the length of time needed to recover the cost of an investment. It is found by dividing the initial investment by the constant annual cash inflows.

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