Caption: Figure 4: Simple payback period
for split unit at SASO test conditions.
Comment on the stable price assumption underlying the IRR and payback period
results for the potential UHDTV project.
In this example, the payback period
calculates to 28 months.
The software presents clear and compelling data for the user, including estimated statistics on operating expenses, savings, payback periods
, ROI and energy usage.
If you expect a 20-percent return on new investments, a payback period
of five years or less suggests a go-forward decision.
The total monetary values [TABULAR DATA FOR TABLE IV OMITTED] calculated under these headings are used in the payback period
calculation, for which the simplified formula is: payback period
= (initial investment costs)/(yearly benefits - yearly costs):
Surveys also report a higher reliance in Japan on the payback period
in evaluating capital investments.
The cash payback period
is defined as the period of time required to recover the amount invested.
In the New York area, lighting upgrades generally have a payback period
of less than one year.
Dividends from funding investments like this could have a 10-to 15-week payback period