ANALYSIS
Project ROI and Payback
ROI = (Σflows − investment) / investment. Payback = smallest n such that the sum of flows ≥ investment.
Inputs
Cash Flows
| Period | Flow ($) | |
|---|---|---|
| t1 | ||
| t2 | ||
| t3 | ||
| t4 |
Results
- ROI30%
- Payback (periods)4
Simple ROI without considering opportunity cost. Payback is the time to recover capital nominally.