Payback period

(redirected from payback periods)
Also found in: Medical, Financial.

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 ?
The resulted curves, representing different payback periods, divided the figure into two regions.
The low investment, short payback periods, no capital outlay and minimal impact on tenants and building operations make GreenSmart, The Smart Path to Energy Reduction.
And if a user is comparing several systems within a facility, an overall estimated payback period for the entire investment can be easily checked.
The differences in payback periods are not caused so much by differences in costs, but differences in the exploitation benefits.
Surveys also report a higher reliance in Japan on the payback period in evaluating capital investments.
In the New York area, lighting upgrades generally have a payback period of less than one year.
The result is more attractive mobile service business models that expand revenue opportunities, deliver shorter payback periods, require less capital and produce higher returns on investment.
The result is more attractive Wi-Fi business models that expand revenue opportunities, deliver shorter payback periods, require less capital and produce higher ROIs.
Doing more with less has become the rule in many IT installations and considerations such as time to value, short payback periods and fast ROI have become integral parts of IT selection criteria for management software," said Tim Grieser, program vice president for Enterprise System Management at IDC.
The Eclipse system gives customers quality protection, short payback periods and requires less maintenance than other temperamental Electronic Systems.
Delegates will examine case studies, deployment costs, charge for service, payback periods, from their colleagues in the independent operating industry who have pioneered this service.