Calculate Payback Period Accurately And Efficiently With Excel: A Comprehensive Guide
In Excel, payback period calculation involves determining the number of years required for an investment to recoup its initial cost. Use the formula “=SUMIF(cash_flow_range, “<0″, -cash_flow_range)/initial_investment” in a cell. The cash_flow_range is the series of annual cash flows, and the initial_investment is the initial cost of the investment. This formula calculates the cumulative negative cash…