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Payback period

• The length of time in years it takes for a project's yearly incremental after-tax cash inflows to recover the incremental investment in the project.

• The length of time it takes for the company's accumulated earnings to equal the price of the stock, assuming that they grow at the forecasted rate.

 
 Embedded terms in definition
 Cash
Earnings
Stock
Time
 
 Related Terms
 

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