Payback 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 ?
html) The Wall Street Journa l discusses the longer loan periods by starting off with an anecdotal account of a woman who took out a loan to buy a 2013 Toyota Camry.
Roy Keane paid pounds 2m for him in January 2007 but Stokes made just 34 appearances and had two unimpressive loan periods in the Championship.
This volume includes the following chapters: (1) Academic Calendar & Payment Periods; (2) Cost of Attendance (Budget) ; (3) Calculating Pell Grant Awards; (4) Stafford/PLUS Loan Periods and Amounts; (5) Awarding Campus-Based Aid; and (6) Packaging Aid.