payback period
period of time required until income from an investment is worth its cost | ||||
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Payback Period definition was found in categories: Business & Finance(2) Encyclopedia(1)
Payback Period Definition from Business & Finance Dictionaries & Glossaries
| MONASH Marketing Dictionary |
Payback Period
the time taken for a new product to recover its investment cost and to generate profits; used as a measure of performance for new products.
the time taken for a new product to recover its investment cost and to generate profits; used as a measure of performance for new products.
| Raynet Business & Marketing Glossary |
Payback Period
the amount of time it takes to recover the costs involved with the orginal capital investment.
the amount of time it takes to recover the costs involved with the orginal capital investment.
Payback Period Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Payback period
Payback period in business and economics refers to the period of time required for the return on an investment to "repay" the sum of the original investment. For example, a $1000 investment which returned $500 per year would have a two year payback period. It is intuitively the measure that describes how long something takes to "pay for itself"; shorter payback periods are obviously preferable to longer payback periods (all else being equal). Payback period is widely used due to its ease of use despite recognized limitations, described below.
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