{"id":7207,"date":"2018-09-17T12:30:43","date_gmt":"2018-09-17T07:00:43","guid":{"rendered":"http:\/\/innoroo.com\/blog\/?p=7207"},"modified":"2018-09-17T11:11:55","modified_gmt":"2018-09-17T05:41:55","slug":"payback-period-glossary-2","status":"publish","type":"post","link":"https:\/\/innoroo.com\/blog\/2018\/09\/17\/payback-period-glossary-2\/","title":{"rendered":"Payback period | Glossary"},"content":{"rendered":"<p><strong>Definition :<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The payback <\/span><span style=\"font-weight: 400;\">amount<\/span> <span style=\"font-weight: 400;\">is that the<\/span><span style=\"font-weight: 400;\"> length <\/span><span style=\"font-weight: 400;\">of your time<\/span> <span style=\"font-weight: 400;\">needed<\/span><span style=\"font-weight: 400;\"> to recover <\/span><span style=\"font-weight: 400;\">the value<\/span><span style=\"font-weight: 400;\"> of <\/span><span style=\"font-weight: 400;\">an<\/span><span style=\"font-weight: 400;\"> investment. The payback <\/span><span style=\"font-weight: 400;\">amount<\/span><span style=\"font-weight: 400;\"> of a given investment or project is <\/span><span style=\"font-weight: 400;\">a crucial<\/span><span style=\"font-weight: 400;\"> determinant of <\/span><span style=\"font-weight: 400;\">whether or not<\/span><span style=\"font-weight: 400;\"> to undertake the position or project, as longer payback periods <\/span><span style=\"font-weight: 400;\">are<\/span> <span style=\"font-weight: 400;\">generally<\/span><span style=\"font-weight: 400;\"> not <\/span><span style=\"font-weight: 400;\">fascinating<\/span><span style=\"font-weight: 400;\"> for investment positions. The payback <\/span><span style=\"font-weight: 400;\">amount<\/span><span style=\"font-weight: 400;\"> ignores the <\/span><span style=\"font-weight: 400;\">time value<\/span> <span style=\"font-weight: 400;\">of money<\/span><span style=\"font-weight: 400;\"> (TVM), <\/span><span style=\"font-weight: 400;\">in contrast to<\/span> <span style=\"font-weight: 400;\">different<\/span> <span style=\"font-weight: 400;\">ways<\/span><span style=\"font-weight: 400;\"> of capital budgeting <\/span><span style=\"font-weight: 400;\">like internet<\/span> <span style=\"font-weight: 400;\">gift<\/span> <span style=\"font-weight: 400;\">worth<\/span><span style=\"font-weight: 400;\"> (NPV), internal rate of <\/span><span style=\"font-weight: 400;\">return<\/span><span style=\"font-weight: 400;\"> (IRR), and discounted <\/span><span style=\"font-weight: 400;\">cash flow.<\/span><\/p>\n<p><a href=\"http:\/\/www.innovationroots.com\"><b>Click here<\/b><\/a><span style=\"font-weight: 400;\"> to get such more insights<\/span><\/p>\n<p><b>Further Reading:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Lean Agile Software Development by\u00a0<\/span><span style=\"font-weight: 400;\">Alan Salloway, Guy Beaver and James R. Trott.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Definition : The payback amount is that the length of your time needed to recover the value of an investment. The payback amount of a given investment or project is a crucial determinant of whether or not to undertake the position or project, as longer payback periods are generally not fascinating for investment positions. The [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":7208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[102],"tags":[1148,105,1149,1150,1166],"class_list":["post-7207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-glossary","tag-alan-salloway","tag-glossary","tag-guy-beaver","tag-james-r-trott","tag-payback-period"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/innoroo.com\/blog\/wp-content\/uploads\/2018\/09\/Payback-Period.png?fit=3125%2C1709&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8Rui8-1Sf","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/posts\/7207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/comments?post=7207"}],"version-history":[{"count":1,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/posts\/7207\/revisions"}],"predecessor-version":[{"id":7209,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/posts\/7207\/revisions\/7209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/media\/7208"}],"wp:attachment":[{"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/media?parent=7207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/categories?post=7207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/innoroo.com\/blog\/wp-json\/wp\/v2\/tags?post=7207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}