payback period (PB)

Definition

Construction

  • Measures the length of time until accumulated savings are sufficient to pay back the initial cost. Discounted payback (DPB) takes into account the time value of money by using time-adjusted cash flows. If the discount rate is assumed to be zero, the method is called simple payback (SPB).
http://www.dictionarycentral.com/definition/payback-period-pb.html