|Author||Topic: HP 12C: Calculate payback period??|
|How do you find the payback period using the HP 12C?
For example, I invest $50,000 and have cash inflows of $20,000, $15,000, and $30,000 in years 1, 2, 3. What's the payback period?
I've scoured the internet - someone please help!
|Don't know about using the calculator for this, but it's easy to do by hand.
Cumulative cash flows
t0 = -50,000
t1 = -30,000
t2 = -15,000
t3 = 15,000
payback period = 2 + 15,000/30,000 = 2.5 years
The numerator is the remaining balance in t2. The denominator is the cash flow received in t3. And you basically assume $15,000 out of the $30,000 is received halfway through the year.
|Hi, I have the same question and I have googled several variations of this questions without finding an answer, anyone has and answer please? I really don't feel like using the Texas. Thanks.|