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The payback period is defined as the amount of time, in years, that it takes

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The payback period is defined as the amount of time, in years, that it takes

The payback period is defined as the amount of time, in years, that it takes

▸ for an investment to return the original amount of the capital plus the required rate of return.

▸ for an investment to return the original amount of invested capital.

▸ the company to earn enough profit generated from the capital asset to cover its cost.

▸ the company to provide a required return on the capital asset.

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Managerial Accounting

Edition: 4^th

Author: Davis

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