Payback and Annuity Evaluation Methods

Payback and annuity pages explain project evaluation methods that focus on recovery timing or annualized project value.

These tools complement return and cost-benefit methods in capital budgeting.

In this section

• Discounted Payback Period: Recovering an Investment After Accounting for Time Value
  Understand discounted payback period, how it differs from simple payback, and why it gives a stricter recovery test.
• Equivalent Annual Annuity Approach (EAA): Comprehensive Overview and Key Formulas
  An in-depth examination of the Equivalent Annual Annuity Approach (EAA)