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What is the payback reciprocal?

Answer»

The payback RECIPROCAL is a CRUDE estimate of the rate of return for a project or investment. The payback reciprocal is computed by dividing the digit "1" by a project's paybackperiod EXPRESSED in years. For EXAMPLE, if a project's paybackperiod is 4 years, the payback reciprocal is 1 divided by 4 = 0.25 = 25%.



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