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.
