# How do you calculate the Payback Period and the NPV for the project?

Net CFAT ($1,100,000.00) $479,000.00 $11,500,000.00 $5,355,000.00 X

Â© BrainMass Inc. brainmass.com March 4, 2021, 5:55 pm ad1c9bdddfhttps://brainmass.com/business/net-present-value/how-do-you-calculate-the-payback-period-and-the-npv-for-the-project-17919

#### Solution Preview

The Payback Period represents the amount of time that it takes for a Capital Budgeting project to recover its initial cost. The use of the Payback Period as a Capital Budgeting decision rule specifies that all independent projects with a Payback Period less than a ...

#### Solution Summary

The solution provides a full explanation together with formulas for the calculations.

$2.49