A method of calculating how long it will take to recover the difference in costs of two different heating and cooling systems by using the energy and maintenance cost savings from the more efficient system.
The length of time required for the net revenues of an investment for the net revenues of an investment to return the cost of the investment.
Retaliation or compensation. Or the break-even point of an investment.
In business decision making it means the number of years before the cash invested in a project is returned. It involves the cash flows from the projected but the cash flows are not discounted to reflect the time value of money. To Top
The amount of time it takes an initial investment to be recouped by revenue or cost savings over time. A PV system can pay for itself in 5-10 years depending on electricity rates and system costs. Solar hot water systems can pay for themselves in as little as 2-3 years.
financial return or reward (especially returns equal to the initial investment)
the act of taking revenge (harming someone in retaliation for something harmful that they have done) especially in the next life; "Vengeance is mine; I will repay, saith the Lord"--Romans 12:19; "For vengeance I would do nothing. This nation is too great to look for mere revenge"--James Garfield; "he swore vengeance on the man who betrayed him"; "the swiftness of divine retribution"
The time it takes to recover the amount invested, commonly expressed in months or years.
The length of time before the money you save with new equipment, insulation, etc. will equal your original investment. Commonly used in evaluating energy-related items.
A term frequently associated with investment return, i.e., payback period. For example, a payback period typically represents the time required for net cash flows to equal initial cash outlay. Other payback measures exist in the marketplace. The term payback is sometimes referenced in Appraisal, the value of an improvement for adjustment purposes under the direct comparison approach.
The period in years to recover the investment or loan. It may be calculated on a discounted, non-discounted, leveraged, or unleveraged basis.
Savings from reducing energy cost and seeing this reflected in your heating/cooling bills.
The rate at which the savings from the project covers the initial costs of the project.
Payback is a method of investment appraisal. The payback period represents the number of years it takes the cash inflows from a capital investment project to equal the cash outflows. A business may have a target payback period, above which projects are rejected. The main drawback with the payback method is that it does not reflect the time-value of money. Accordingly, it does not discriminate between receiving cash now as compared with receiving the same amount of cash in several years time. Another criticism of the payback method is that it ignores cash flows that arise after the payback has been completed.
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
The length of time it takes for the savings received to cover the cost of implementing the technology.
The amount of time required for positive cash flows to equal the total investment costs.
The time, usually in years, from some point in the development process until the commercialized product or service has recovered its costs of development and marketing. While some firms take the point of full-scale market introduction of a new product as the starting point, others begin the clock at the start of development expense.