Payback period is the time it takes to pay back what a project costs. For a project that costs $5,000,000 and delivers increased revenue of $500,000/month, how do you calcuate payback period?

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Question:Payback period is the time it takes to pay back what a project costs. For a project that costs $5,000,000 and delivers increased revenue of $500,000/month, how do you calcuate payback period?

1.$500,000 * 12 months = $6,000,000 payback per year

2.$5,000,000/$500,000 = 10 months

3.$5,000,000 / 12 months = $416,666 per month in payback

4.$5,000,000 - $500,000 = $450,000 payback period

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  1. Payback period is the time it takes to pay back what a project costs. For a project that costs $5,000,000 and delivers increased revenue of $500,000/month, how do you calcuate payback period?
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