Payback period in Excel

[@TheFinanceStoryteller]

The payback period Excel model from the video is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check kzbin.info/door/QQJnyU8fALcOqqpyyIN4sgjoin

[@lorenzoperin9211]

And here comes my 2 questions if you dont mind😊: 1. Wasn't more correct to calculate for each year the Present Value of the future benefits? For the principle that money today > money tomorrow... 2. Usually in my company we use it to evaluate investments on P&L side, eg.: I pay x for a severance but I will get xyz benefits in coming years..replacing the NPV as we have rule: if Payback

[@TheFinanceStoryteller]

Hello Lorenzo! Thank you for the kind words. In response to your questions: 1. What you are talking about is the "discounted payback" method, a sort of hybrid between simple payback and NPV. I discuss it in this video: kzbin.info/www/bejne/jGLEXneqZ91ke7M 2. Yes, I have heard that as well. Many companies use e.g. payback < 3 years for cost reduction projects, NPV and IRR for growth projects, and no financial criteria for EHS projects.

[@lorenzoperin9211]

@TheFinanceStoryteller thank you for the kind answer, all clear

[@godfreyzi]

Very Helpful! I love the way the formulas are displayed. Looking forward to a lecture on creating projected financial statements for a start-up business. Thanks

[@TheFinanceStoryteller]

Thank you for the kind words, Godfrey, and for the suggestion for a future video topic. For now, what I can offer is my video on "Free cash flow (and revenue and profit) in the business plan": kzbin.info/www/bejne/fHSTi4J6jKutptE Let me know what you think of it!

[@godfreyzi]

Thank You. Will check it out

[@nealshah9575]

Heyy Please dont stop Uploading I Truly want to learn Finance Things as I am Finance student

[@TheFinanceStoryteller]

No worries! Been delivering a lot of "Finance Essentials" and "Advanced Finance" programs to clients in the corporate world. Now back to making videos starting this week! Stay tuned!

[@FastandFinance]

Hello sir, you don’t know me but you helped me a lot. So thank you ❤

[@TheFinanceStoryteller]

Glad to hear that! Thank you to the KZbin algorithm for enabling us to connect. :-) Have a look at the related videos in my capital budgeting playlist, it covers a lot of different topics in that field: kzbin.info/www/bejne/fHvNeJxtnNh-aaM&pp=gAQBiAQB

[@she-eohustle]

Is there a template for this?

[@TheFinanceStoryteller]

Hi! The payback period Excel model from the video is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check kzbin.info/door/QQJnyU8fALcOqqpyyIN4sgjoin

[@xierli8585]

First view 😊

[@TheFinanceStoryteller]

Well done!!! 😎 Now you know what was keeping me busy today.