Payback Time Flashcards
1
Q
What is ‘Payback Time’?
A
The time taken to pay for the modification using the money that has been saved
2
Q
So if a draught excluder costs £10 and saves £1 a year, how long is its ‘Payback Time’?
A
10 Years
3
Q
How do you work out your Payback Time?
A
Initial Cost divided by saving per year
