Endurgreiðslutímans
Endurgreiðslutímans is an Icelandic term that translates to "repayment period" or "payback period" in English. It refers to the length of time required for the cumulative net cash flows from an investment or project to equal the initial investment. This metric is commonly used in financial analysis to evaluate the risk and liquidity of an investment.
The calculation of the endurgreiðslutímans involves summing the expected cash inflows from an investment year by
While the endurgreiðslutímans is a simple and intuitive measure, it has limitations. It does not consider cash