Calculating Payback Period

[@Techinsane011]

Thanks, this helps while struggling through Financial management. Great simplest way to get through this!

[@nusiia1]

After watching several videos, this one was just crystal clear. thank you very much :)

[@kappfamily]

Thank you, best video out there on this topic

[@turtleagingwithchinesemedi2418]

indeed. others make it sounds so complicated, this is one of the best approach that I have cane across too. thanks! 😊

[@jamesmichealalmen8429]

Easy to understand. Thank you so much. You have a gift on teaching

[@pinkaltewari7069]

i appreciate your effort,its really helpful.

[@francistiamsic]

Thank you sir Dan, it was very helpful

[@giphk2449]

Thank you this was very helpful!!!!!!!!

[@sinclair657]

Thanks a lot this really cleared things up for me.

[@anghmw]

THANK YOU! I finally understand how to calculate payback period. (:

[@marianyepe3346]

thank you very much i now understand the PBP clearly.

[@missfatimazahid]

oh my god this is so simplified, thank you so much

[@sia_ibk]

Really nice video. When you say cash flow, do you mean cash inflow or net cash flow

[@prettydeee7499]

Thank you so much .

[@lauryntae6222]

Thank you! This was really helpful☺

[@londiwedlamini251]

Thank you so much, wonderful explanation

[@yumawaung6940]

thanks you.this helped me a lot.

[@mercykasonde9403]

Really helpful. Thanks a lot.

[@SharinaA]

Hi, I got a question, I have financial management subject and I have stated the question below. What I got confused is that, it says 7 years, but in the revision it says 2 years. I think I dont understand the question. Can someone explain me ?
Example:
If $2m is invested to earn $500,000 per annum for 7 years, what is the payback period?

[@114titan114]

Hey Dan, thanks for the video it is really useful. However, I am wondering how to calculate the Payback Period if we have no particular numbers how much Cash flow in each Year. For example: "A Project with projected 6-year life would cost 100.000 . Its annual Cash Flow would be 40.000 while its annual income cash flow would be 30.000. What is the Payback Period?"
And thats what it makes it so complicated. I hope you can help. :)

[@dancefaeva]

THANK YOU !! it really helped!

[@lailaqrochi2285]

Thanks :) You are awesome!

[@andrejones962]

this very helpful, thank u very much

[@vvasanth365]

Actually, you helped me :)

[@DevanshiRuparel]

why do you divide (15)/25? I understand that you use it to calculate the months... but what exactly does the net cash flow of
yr2 divided by the cash inflow of yr3 mean/signify mathematically?

[@DevanshiRuparel]

+Devanshi Ruparel also, Great videos! (even ARR) do you plan to make one on net present value?

[@shemmurray9208]

Thank you so much!!!

[@valerieurdich4316]

really well explained! thank you, lifesaver =)

[@M4LW4RETheDeviltech]

Thank you!This is great!!!

[@sumitakerketta4961]

where you've mentioned the -ve sign??

[@FKuhn]

I’m uncertain whether this is is correct because isn’t the payback period meant to determine when an investment breaks-even?

[@DanSlaughter]

Nope. I think you are referring to break even analysis.

[@volac0713]

thank you very much !!1its help alot

[@shaniajay2184]

Thank you so so much! So helpful and clearly explained

[@alisoltanloo5859]

you are awesome

[@johnpebbles9116]

that was very helpful

[@sunkanmibero]

easyz peeze. great explanation.

[@aliviagibbens8780]

So informative!

[@spalazzo7]

so if you needed an answer in years rounded to a decimal, it would be 2.8 years?

[@mohammadalquran3106]

da fkcn easiest way so far thank you

[@chrisengstrom82011]

And of course, if they are looking for an actual number for payback period in the form of an approximate, it would be 2.6 years. You could skip the last calculation of multiplying it times 12 to get number of months and just let it remain at 2.6 years. Which is essentially the same as 2 years 7.2 months.

[@OneidaNativeGirl16]

Thanks it helped

[@rockrocky6727]

Thank u so much

[@iamChronoz]

thank you very much

[@ShamimHassad-mz8hm]

Thank u Sir

[@immyachom2165]

Thanks alot

[@maheensana]

Thank you!!

[@DardouriNezha]

THANK YOU

[@kennethpadre6649]

Thank you

[@felixtira5245]

Thanks!!

[@garyho5084]

i dont get how is 7.2 rounded up as 8 months...

[@DanSlaughter]

7.2 would work but some people would want to know complete months so 8 months is correct and 7 months is not.

[@garyho5084]

ok thanks ! : )

[@fazlayj]

Thanks

[@mahabubulalam6265]

Cool

[@allendiscaya1970]

MY PROFESSOR JUST GAVE ME THE INITIAL COST (INVESTMENT) AND THE LIFE. HOW THE FUCK CAN I COMPUTE FOR THE PAYBACK PERIOD? SOMEONE ANSWER

[@RR42636]

+Allen Discaya believe in yourself

[@RR42636]

+Allen Discaya believe in yourself

[@meenu...98-z9v]

Its even cashflow...for all th year..so the formula is.....initial investment÷annual cash flow

[@claireoflynn5683]

under minimum pay rate 4 years company just repaying 15 months

[@immyachom2165]

Thanks

[@claireoflynn5683]

under minimum pay rate 4 years company just repaying 15 months