PaybackAnalysen
PaybackAnalysen, also known as payback analyses or payback period analyses, are financial techniques used to estimate the time required to recover an initial investment from expected cash inflows. They provide a simple measure of liquidity risk and the speed with which capital can be repaid.
Methodology is straightforward. Identify the initial outlay, forecast the expected annual cash inflows, and construct a
A common variation is the discounted payback period, which discounts future cash inflows to their present value
Payback analyses have several advantages and limitations. They are simple to compute and easy to communicate
In practice, a shorter payback period generally signals lower liquidity risk, but there is no universal threshold.