Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Suzanne is a content marketer, writer, and ...

The payback period is how long it will take to recover money invested in a project, and the so-called straight-payback-period calculation is the simplest way of determining the project's investment ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of ...

Imagine you bought a vending machine for $2,000. This vending machine made you profits of $100 a year, after all expenses. It would take 20 years to recoup your initial investment. The amount of time ...

What Is The CAC Payback Period? The PAYBACK period for customer acquisition costs (CAC) means the time taken by a company to recover the expenses incurred to acquire or onboard new customers. The CAC ...

The payback method of evaluating capital expenditure projects is very popular because it's easy to calculate and understand. It has severe limitations, however, and ignores many important factors that ...

What Is a Payback Period? The payback period is the amount of time (usually measured in years) it takes to recover an initial investment outlay—as measured in after-tax cash flows. For example, if a ...