Payback Period Definition:

Payback period is the length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates.

Other Related Accounting Articles:

• Cost to Cost Method of Revenue Recognition
• Simple Rate of Return Definition
• Inventory Conversion Period
• Average Balance
• Job Costing
• Internal Rate of Return Definition
• Balloon Interest
• Accounting for Non-Trading Concerns
• Underinvestment Problem
• Direct Labor Efficiency Variance