Payback or payoff calculation | Free template

Payback or payoff calculation is a free template to compare and take decisions on investments with the help of the payback method. The payback method (payoff) is about to calculate how many periods it takes for an investment to pay back itself, the usual period is years.

A payback calculation is the simplest and quickest method of drawing up an investment analysis. In a payback calculation the idea is to calculate how many periods of cash flow is required to cover up for the initial investment. In the payback method you have to divide the initial investment with the periodic cash flow to obtain the number of periods required to make up the initial investment.

A payback calculation does not take into account the time value of money, the payoff method sees all streams of cash flow as equal, regardless of when they occur in time.

In this template for payback calculation you can compare many different investment alternatives with respect to payoff time. The payoff method is a simple and quick method of investment calculation. Updated: 01/01/2015 | Created by All-templates.biz

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