310chapter16m8

A project to pay for itself the shorter the payback

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Unformatted text preview: for itself. a project to pay for itself. The shorter the payback period the better. The shorter the payback period the better. Chapter 16 Module 8: Payback Period To calculate the payback period: To calculate the payback period: Payback period = Initial investment Net annual cash inflow Note that this is the same formula used to calculate the IRR factor (see chapter 16 module 7) Chapter 16 Module 8: Payback Period Management at The Daily Grind wants to install Management at The Daily Grind wants to install an espresso bar in its restaurant. an espresso bar i...
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This note was uploaded on 03/24/2014 for the course AMIS 310 taught by Professor Smith during the Spring '08 term at Ohio State.

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