The payback period is the length of time required for the cash returns from an investment to offset its initial cost.
The length of time needed to repay the initial monetary investment is known as the payback period. In other terms, it is the length of time that passes after a machine, facility, or other investment generates enough net income to pay its costs.
The time it takes to recover the money invested is used to calculate the payback period, which ignores the time value of money. For instance, the payback period is five years if it takes five years to recoup the cost of an investment.
To Know more about initial cost.
https://brainly.com/question/19865185
#SPJ4
