Accounting Dictionary
Cash Payback Method
The cash payback method is a type of capital investment analysis that predicts how soon a company will recoup its original investment.
If I invest $50,000 in a machine I will make an additional $10,000 a year. $50000 divided by $10000 is five. It will take five years for me to get my $50,000 back. Five years is my payback period.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/cash-payback-method/
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