TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

PAY-BACK METHOD [1 record]

Filter results by subject field Alphabetical list of terms

Filter results by subject field

Alphabetical list of terms

Record 1 2003-06-10

English

Subject field(s)
  • Foreign Trade
DEF

A method of comparing the profitability of alternative projects.

OBS

the object is to determine over what period the net cash generated by an investment will repay the cost of the project: (pay-back period) = (cost of project) / (annual increase in income (after tax)). The most serious drawback of the pay-back method is that it takes no account of the life of the investment, and ignores the timing of proceeds.

French

Domaine(s)
  • Commerce extérieur

Spanish

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