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.
Payback Period Formula |
| \(\large{ PP = \frac{ II }{ CI } }\) |
| Symbol |
| \(\large{ PP }\) = payback period |
| \(\large{ CI }\) = cash inflows |
| \(\large{ II }\) = initial invertment |
