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Payback Period
Payback Period
Description
The Payback Period calculates how long it takes for an organization to get
back the funds it originally invested in a project. It is basically used to
determine the time needed for an investment to break-even.
($80)
=INDEX(C7:C11,MATCH(0,D7:D11,1)+1) ($100)
=ABS(INDEX(D7:D11,MATCH(0,D7:D11,1)))
($150)
($150)($150)
($200)
=COUNTIFS(D7:D11,"<"&0)+C15/C14
eriod: Expected vs. Cumulative Cash Flows
$55 $50
$40 $40
$25
$15 $10