How do you calculate payback period for PMP?

To calculate the Payback Period, the cost of the investment is divided by the new cash flow. It means the payback period will be the 4 years.

How do you calculate payback period using uneven cash flow in Excel?

Quote from video on Youtube:Here's how I lay out the analysis. We list the cash flows by period so right now period zero. We spend a hundred and fifty thousand then we generate seventy-five thousand in the next year zero.

How do you calculate payback period for uneven cash flows?

If the cash flows are even you have the formula: Payback Period = Initial Investment / Net Cash Flow per period If the cash flows are uneven you have: Payback Period = Years before full recovery + Unrecovered cost at the start of the year / Cash flow during the year The ClearTax Payback Period Calculator calculates the …

How do you do uneven cash flow in Excel?

Quote from video on Youtube:Function NPV stands for present value of uneven cash flows. You need the cash flows. You need to discount rate okay and for plan a it's eleven point two five percent.