End of work on any project ends calculation period or payback time.There are certain time limits, reaching which any company should generate income.Otherwise, the project is considered unprofitable.In this case, for the salvation of the work done (if the result is recognized as unpromising, are beginning to change economic indicators: reduce the cost of materials, equipment and technology. In order to calculate the return on the project, at least you need to know - it's estimated earnings and capital investment, both one-time andperiodicals. In the first case, the calculation is rather primitive. The payback period is calculated by dividing the one-time capital investment in the annual profit.
For example, in the construction of the tool shop resources have been invested in the purchase of land, building materials, pay for labor, equipment. Roughly speaking,the early years of building maintenance does not require repair. Therefore the return on the project will be equal to 3 million rubles (land) +15 million rubles. (building materials) +10 million rubles. (Payment of the workforce) to + 200 mln. (purchase and installation of equipment) / 50 million rubles. = 4.56 years.
Perhaps even a layman it is clear that such a calculation is rather primitive: in any case investments do not stop at the stage of commissioning of the building.Workers' wages, payment of energy, equipment repair, and much more is included in operating expenses, which greatly affect the payback period of the project.The same formula can not always be applied in different contexts, areas of production and services.
payback period of the investment project will be calculated correctly only in the case of current account maintenance costs (and if the project provides for the reconstruction or innovation in existing businesses, it is also taking into account savings in operating costs).
example: at the railway station was built and put into operation an additional way of receiving freight trains.Then return on the project would be limited to a period that is equal to the inverse of the discount rate.This attitude, in turn, is comparable with the ratio of capital expenditure to the product of a difference to save operating costs and expenses and other differences units and shares of all tax payments.Agree, pretty confused definition.All looks much easier by a formula: T = 1 / K = E / (E-Edop) * (1-y).
In this example, current expenditure will be performing maintenance costs, depreciation, and lighting the way.Saving the running costs should be calculated based on the estimated rate of one car-hour of downtime and savings wagon-hours.
If you know the return on the project, or rather, her period, then in the future, you can easily calculate the cost-effectiveness of the entire enterprise.It is determined internal rate of return, profitability index, net present value.It is sometimes easier to net income.Payback period, the calculation of which we presented last just fits this case.
