Payback Period
Payback Period Formula |
\( PP \;=\; \dfrac{ II }{ CI } \) |
Symbol |
\( PP \) = payback period |
\( CI \) = cash inflows |
\( II \) = initial invertment |
Payback period, abbreviated as PP, is the time in which the initial investment is expected to recover through the cash inflows generated by the investment.