Payback period

(redirected from Loan Period)
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payback period

[′pā‚bak ‚pir·ē·əd]
(industrial engineering)
The amount of time required for achieving an amount in profits to offset the cost of a capital expenditure, such as the cost of investment in modifications in an industrial facility for the purpose of conserving energy.

Payback period

A popular nondiscounting project selection technique used when organizations require the capital investment of a project to be recovered within a specified period; the period it takes for the stream of net cash flows to equal the initial investment. Also, a term used in the evaluation of sustainable and renewable energy options, wherein greenhouse or greenhouse intensive energy savings that the technology may enable over its useful life are assessed in relation to the embodied energy required for its manufacture. For renewable energy systems, it can also refer to the period of time over which energy cost savings derived from accessing renewable energy offset the upfront capital costs of the system.
References in periodicals archive ?
Liverpool are adamant they want a transfer fee of around [pounds sterling]25m for the forward, but are prepared to write in a loan period with a guarantee of a payment in the summer.
The loan involves interest subsidy in the amount of approximately EUR298,000, the amount being affected by, inter alia, interest rate trends and the eventual loan period.
While Salah remained absent and silent, Fiorentina extended his loan period, and sent e1/41m to Chelsea, according to the previous agreement.
In terms of the required monthly installments, the borrower will have to pay far less in the second half of the loan period when compared with his obligations in the first half.
The authority first decided to shorten the loan period to 21 days across all libraries in November last year, a decision that was initially made permanent following an annual review.
However, the Wasps boss won't be extending the loan period of 19-year-old Aberdeen striker Declan McManus.
He will need a loan period because he needs to get games, he needs to go and get the environment and get playing.
The Dubliner, 20, spent last season on loan to Hull City as a winger but Ferguson has promised him the chance to make his mark on this pre-season tour to South Africa and the Far East before deciding whether to extend his loan period with the Tigers.
Hoyte has the unwanted tag of being relegated with both of today's derby rivals - with Sunderland in 2006 during a loan period from Arsenal and with Middlesbrough in 2009.
There is also an option to further extend the loan period by up to two years.
NUNEATON Town agreed a season-long loan for keeper Neil Collett from Mansfield Town yesterday Collett, arguably the team's most consistent performer over the opening six weeks of the season, was eager to stay at the club when his initial loan period ran out at midnight.
However, if you decide to pay off your debt before the end of the loan period, watch out for a redemption charge.