# calculate the payback period with a spreadsheet

• ### calculate payback period in | Excelchat

I don''t know how to calculate loan interest, please help me with this question: Calculate, in cell D20, the interest amount for period 1 by multiplying the balance in period 0 (cell F19) by the loan interest rate (cell C13) divided by 12. Dividing the interest rate by 12 results in .

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• ### Excel Calculating Payback period ExpertsExchange

Excel Calculating Payback period. A need a excel formula that can calculate the number of years until the total savings match the upfront cost of the panel. But my formula No. of years = LOG (C/S,I) is getting strange answer of 63.

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• ### Payback Period Flashcards | Quizlet

Payback period method measures the time it will take to recoup, in the form of expected future cash flows, the initial investment in a project What is the formula used to calculate the payback period of .

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• ### Discounted Payback Period Calculator | Good Calculators

The Discounted Payback Period (DPP) Formula and a Sample Calculation. n denotes the time period relating to the cash inflows. So, the two parts of the calculation (the cash flow and PV factor) are shown above. We can conclude from this that the DCF is the calculation of the .

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• ### Corporate Finance Case Study : Bullock Gold Mining

Apr 18, 2013· Payback Period (Spreadsheet)*Formula Payback Period in C15 =C7/(B8)+3*Formula Disc Payback Period in E15 =E8/(D9)+4 6.

Therefore, the discounted payback period is a total of years. Chapter 6 The project costs 80,000 today, the required return on investments of this type is 8%, and the required cutoff is 5 years. Calculate both the payback period and the discounted payback period for the project and determine whether or not you should undertake the project.

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• ### Elegant Method for Calculating Payback and Discounted ...

The payback period is 2 plus 20,000/30,000 = years. Simply dividing total initial investment by annual cash flows won''t work, because these are not necessarily constant. Discounted payback is basically the same, except we apply the calculations to the discounted cash flows (given a discount rate) instead of the nominal (undiscounted) cash flows.

### Payback Period Calculator | Double Entry Bookkeeping

Jul 16, 2019· This payback period calculator will help a business to calculate payback period in Excel. The payback period is the time it takes a business to recover it''s investment in a project. Our tutorial on the payback period method gives full details about how to calculate and use the payback period.

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• ### ROI or Payback Period | New Leaf

Aug 06, 2012· Payback period doesn''t calculate this information. In reality, there is no single best financial metric that will tell you "go or no go" on an investment decision. The key is to know what is important to your business and to understand the information you are working with.

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• ### BUSN 379Construct a spreadsheet to calculate the payback ...

Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine. 2. Based on your analysis, should the company open the mine? 3. Bonus question: Most spreadsheets do not have a builtin formula to calculate the payback period.

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• ### How to calculate IRR in Excel Internal rate of return

Using the above mentioned formula, let''s find out how to calculate IRR in an Excel Spreadsheet with a real world example. Given below is a table with cash flows data for different period. The initial investment made in a project is 5000. So, cash flow for period 0 will be 5000.

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• ### Discounted Payback Period Calculator

Thus the smaller the discounted payback period is the better, as it demonstrates the fact that the investment will be recouped quickly. Example of a calculation An initial investment of 1,000,000 is expected to generate an annual cash flow of 155,000.

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• ### calculate payback period in Excel | Excelchat

Calculate, in cell D20, the interest amount for period 1 by multiplying the balance in period 0 (cell F19) by the loan interest rate (cell C13) divided by 12. Dividing the interest rate by 12 results in the monthly interest rate. This formula is reusable.

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• ### Investment Payback Period And What You Need to Know ...

May 24, 2018· If the expected annual inflows are even, the formula is as follows: For instance, if a certain project requires a financial input of 1 million and is expected to produce a cashflow of 200,000 per year, then the investment payback period will be 1million/200,000, which results in five years.

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• ### How to Calculate Payback Period Finance Train

How to Calculate Payback Period. CFA Exam, CFA Exam Level 1, Corporate Finance. The payback period of a project is defined as the number of years it takes for the project to recover its original investment. Let''s take a simple example to understand how payback period is calculated. Assume that a company invests 5,000 in a project, which ...

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• ### 1. Construct a spreadsheet to calculate the payback period ...

1. Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine. 2. Based on your analysis, should the company open the mine? 3. Bonus question: Most spreadsheets do .

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• ### Calculate The Payback Period With A Spreadsheet

I understand how everyone has calculataed the payback period from the other posts but my questions is this: Most spreadsheets do not have a built The use of the Payback Period as a Capital Budgeting decision rule specifies that all independent projects with a ... the project with the quickest payback is ...

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• Payback Period Formula. Payback Period = (Initial Investment − Opening Cumulative Cash Flow) / (Closing Cumulative Cash Flow − Opening Cumulative Cash Flow) In essence, the payback period is used very similarly to a Breakeven Analysis but instead of the number of units to cover fixed costs, it considers the amount of time required to return the investment.

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• ### HELOC Payment Calculator with InterestOnly and PI ...

HELOC Payment Calculator Glossary of Terms. Number of years to calculate PI payment: If you would like the HELOC payment calculator to calculate the principal and interest payment that will begin once the draw period is over, enter the number of years to repay the line of credit. Monthly interestonly HELOC payment: This is your monthly interestonly home equity line of credit payment.

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• ### Transformer Losses Payback Calculation | Electrical ...

Jan 09, 2014· Comparison of Transformer No Load Losses. Comparison of Transformer Load Losses. Comparison of Transformer Annual Amount of Losses. Comparison of Transformer Carbon Dioxide emission rate. Calculate Total Owning Cost (TOC) of Transformer. Calculate Transformer Payback Period. Calculate Annual Rate of Returns. FREE DOWNLOAD

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• ### Payback Formula MrExcel

Apr 25, 2011· Likes (Given) 82. Likes (Received) 3. Mentioned. 1 Post(s) Tagged. 0 Thread(s) Payback Formula I have set up a spreadsheet to calculate the payback period on an investment. The payback period is the year in which the cumulative cash flow first becomes positive. In the example below it becomes postive in year 6.

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• ### Payback Period Microsoft Office Templates

Payback Period Use this worksheet to calculate the payback period of an investment. The payback period is the number of periods (usually years) that it takes to recover the initial investment from the operating cash flows. Be sure to enter the initial investment as a negative cash flow. You should use caution when evaluating an

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• ### Elegant Method for Calculating Payback and Discounted ...

Elegant Method for Calculating Payback and Discounted Payback Period. solved. ... 2 years ago. Archived. Elegant Method for Calculating Payback and Discounted Payback Period. solved. I''ll start off by saying I know how to calculate for Payback and Discounted Payback. What I''m looking for is an elegant way to do so, with minimal helper cells if ...

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• ### Payback Period and NPV: Their Different Cash Flows

Payback Period and NPV: Their Different Cash Flows Kavous Ardalan1 Abstract One of the major topics which is taught in the field of Finance is the rules of capital budgeting, including the Payback Period and the Net Present Value (NPV). The purpose of this paper is to show that for a given capital

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• ### Payback method | Payback period formula — AccountingTools

A variation on the payback period formula, known as the discounted payback formula, eliminates this concern by incorporating the time value of money into the calculation. Other capital budgeting analysis methods that include the time value of money are the net present value method and the .

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• ### Calculate Your Solar Panel Payback Period | EnergySage

May 26, 2019· Take the following steps to calculate your payback period: Determine combined costs. Subtract the value of upfront incentives and rebates from the gross cost of your solar panel system. Determine annual benefits. Sum up your annual financial benefits, including avoided electricity costs and any additional incentives.

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