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finance pricing·Simple
Payback Period
Formula: payback = investment ÷ annual_cash_inflow
Inputs
Results
Payback Period
4.17 year
Warnings & checks
- ⚠Warn if payback is > 5 years (slow recovery)
Recommended next actions
- →Payback ignores time value of money — pair with NPV/IRR
Use for estimation. Verify safety-critical calculations with qualified review.