***** Thanks, this is my last week of financial management, no doubt. I will need help sometime in the future. Please keep up the great work. You are saving brain cells every day!
wow, i never put comments on youtube, but i have to say that this video was super helpful. Clear, and straight to the point. Took me few hours to figure this out and in 5 minutes now I know ! Thanks!!!!!
Oh my god I just want to tell you that I have been trying to understand the concept by searching googles for hours that I get frustrated. I love your formula and I understood just by watching once. Thnx!
Great great great videos! I'm truly thankful. I wish I could get personal tutoring from you! You make it easy for me to understand these concepts. I will be signing up for your paid classes soon. Thanks again!
Edson George Silumbe I'm glad to hear that! I try to cover a wide range of topics, but obviously I'm limited by my own knowledge. If you have something you're struggling with let me know and I'll try to help. Good luck!
Hey, first of all thank you for the video, you helped me a lot. Here is my question: The result of the payback period is 3.16. What does this number mean exactly? 3 years and 1,6 months? How can i find the months and the days of the payback period?
Sir what we will do if there is also depreciation in Q of payback period? Will we use depreciation or simply calculate payback period by ignoring depreciation?
At the 4:16 point, you say that "you expect to receive $4500 at the end of year four. If you need to receive this lump sum in order to be fully paid back, then why isn't the payback period four years? If the payback is 3.17 years, it seems that you are implicitly assuming that you don't have to wait until yearend to receive $750, the remaining amount to recoup.
hey, great video, but i have a query : why haven't you considered the time value of money factor in this case. If you do, then the answer shall be around 3 years and 5 months.
How do you calculate the payback period with uneven cash flows if u are given earnings before tax(the EBT is uneven also) for all the years of the project also
thnks you this video help me for the examination of managerial finance their is on other formula in the same method but different word that is pp= years before full recovery + (Unrecovered cost at start of the year /cash flow during the year). please i need this explain this formula in this example. and thanks a lot
Are you sure the cost of the project is 1,000,000? The total amount of your cash flow projections are only 110,000 so you wouldn't be able to calculate a payback period with the information given. Assuming the cost of your project is 100,000 your payback period is actually around 4.67 years rounded to the nearest hundredth. The reason is after the 4th year you still have 20,000 in costs unpaid but you're going to receive 30,000 in year 5. So 20,000 divided by 30,000 is .6666666666666667.
Hi can you tell me why someone told me to take cumulative total of last negative year/ by cash flow first positive year then * 12. i know why we divide the two but why *12? Is this juts if it is less than a year.
Initial investment is 10000 Cash flows 1. -6000 2. 4000 3. 3000 4 2000 5. 2000 Here initial investment is not recovered. So can we say payback period is 0? Or there is no payabck period in this case?
Took me three days reading about this and still made no sense, I watched your video in five minutes and it was as clear as day. Amasing! Thanks.
Techinsane011 That's the worst feeling. Glad you got it figured out!
***** Thanks, do you have any videos on AFN? Additional funds needed? THX
Techinsane011 I don't at this time, however I may look to covering that topic in the future.
*****
Thanks, this is my last week of financial management, no doubt. I will need help sometime in the future. Please keep up the great work. You are saving brain cells every day!
Just watched this with an exam due in 3 hours, so happy with your video ! Made no sense the last months and now I get it in 5 min!
wow, i never put comments on youtube, but i have to say that this video was super helpful. Clear, and straight to the point. Took me few hours to figure this out and in 5 minutes now I know ! Thanks!!!!!
Glad I could help!
Oh my god I just want to tell you that I have been trying to understand the concept by searching googles for hours that I get frustrated. I love your formula and I understood just by watching once. Thnx!
Thanks! You're Sal's counterpart for Business.
***** What a compliment. Thank you Lute!
I couldn't find an good tutorial but this has helped me so much. Thank you! :)
Great great great videos! I'm truly thankful. I wish I could get personal tutoring from you! You make it easy for me to understand these concepts. I will be signing up for your paid classes soon. Thanks again!
I'm glad that I could help! Thanks for watching.
Thanks brother,u have made my academic life a lot easier
Edson George Silumbe I'm glad to hear that! I try to cover a wide range of topics, but obviously I'm limited by my own knowledge. If you have something you're struggling with let me know and I'll try to help. Good luck!
From Tanzania in East Africa,thank you so much brother,am truly humbled!!
May God Bless repay you for your generosity,Cheeeeers!!!
Edson George Silumbe Thank you! God bless!
Big shoutout to Alanis Business Academy for coming in clutch as fuck
Hey, first of all thank you for the video, you helped me a lot. Here is my question:
The result of the payback period is 3.16. What does this number mean exactly? 3 years and 1,6 months?
How can i find the months and the days of the payback period?
Thank you so much! This gave me an A+ on managerial finance!
+Maya Pragitasari That's great! Glad I could help.
THANK YOU, very easy and understandable formula compared to the one i have learned in class!
AirotkivViktoria Glad I could help! Best of luck with your class this semester.
Thank you Soo much this means Soo much to me, this one saved me in exam.
Thank you! This was so simple and clear!
thats some amazing explanation, keep it up man, u have no idea how this helped me, thank you. god bless u
thank you, so much since yesterday i didn't understand anything . but now I fine
The white on black is so much easier on the eyes, that you for that :)
Karimchii I think so too but it's nice to get some outside opinions. Thanks Karimchii!
***** most welcome, thank you for the video
Thank you so much, it was very helpful.
Wonderfully explained, thank you.
Thank you!
What brought you here Junaid?
Great video, thanks! Is it possible to calculate the Payback Period for a monthly cash flow?
Great explanation.
Clear explanation ✅
Sir what we will do if there is also depreciation in Q of payback period? Will we use depreciation or simply calculate payback period by ignoring depreciation?
At the 4:16 point, you say that "you expect to receive $4500 at the end of year four. If you need to receive this lump sum in order to be fully paid back, then why isn't the payback period four years? If the payback is 3.17 years, it seems that you are implicitly assuming that you don't have to wait until yearend to receive $750, the remaining amount to recoup.
hey, great video, but i have a query : why haven't you considered the time value of money factor in this case. If you do, then the answer shall be around 3 years and 5 months.
This cash payback period doesn’t consider the time value of money
How do you calculate the payback period with uneven cash flows if u are given earnings before tax(the EBT is uneven also) for all the years of the project also
What value can you use for "C" if the negative falls within the last year or period @alanis
Thanks a lot this video really helped me
Glad to hear that Rudaina AlQahtani! Best of luck with your exams.
does payback period take into consider the depreciation and tax?
thnks you this video help me for the examination of managerial finance their is on other formula in the same method but different word that is pp= years before full recovery + (Unrecovered cost at start of the year /cash flow during the year). please i need this explain this formula in this example. and thanks a lot
thank you sooo much ..its really helpful .
great man!!!! many thanks
You're welcome shovetheturn! Best of luck to you!
perfectly explained tysm
Thanks!
You're welcome Jeff!
Are you sure the cost of the project is 1,000,000? The total amount of your cash flow projections are only 110,000 so you wouldn't be able to calculate a payback period with the information given.
Assuming the cost of your project is 100,000 your payback period is actually around 4.67 years rounded to the nearest hundredth. The reason is after the 4th year you still have 20,000 in costs unpaid but you're going to receive 30,000 in year 5. So 20,000 divided by 30,000 is .6666666666666667.
Thank you!!! This was very clear and helpful.
Hi can you tell me why someone told me to take cumulative total of last negative year/ by cash flow first positive year then * 12.
i know why we divide the two but why *12? Is this juts if it is less than a year.
+flankspankrank NVM just watched your video and i now realise it is to convert the decimal into months. Glad i did my assessment right.
+flankspankrank Great! Best of luck to you.
Thank you as well
What if cash flows are negative though the whole life of the project?
In that case there is no payback period since the cash flows do not cover the cost of the project.
great help ! :)
Initial investment is 10000
Cash flows
1. -6000
2. 4000
3. 3000
4 2000
5. 2000
Here initial investment is not recovered. So can we say payback period is 0? Or there is no payabck period in this case?
Thank yooouuu mannnn!
Marcelo Mena You're welcome Marcelo! Thanks for watching.
Thank you :D
Raj Wraith You're welcome Raj!
If i invest £1000 any that company earns 15% profit then how to calculate payback period?
whats the answer in Years, months and days?
thank you sooo much..... T^T
***** You're welcome! Glad I could help.
Great !!
javier zurita Thank you!
THAAANKYOUUUUUUUUUUUUU
Teach us how to calculate the payback period with consistent Cash flow
legend