qfinbox.tvm.cashflow.payback_period

qfinbox.tvm.cashflow.payback_period(cash_flows: List[float] | ndarray) → float

Calculate payback period for cash flows.

Parameters:

cash_flows (array-like) – Series of cash flows, with initial investment as negative value.

Returns:

Payback period in years.

Return type:

float

Examples

>>> cash_flows = [-100000, 30000, 40000, 50000]
>>> payback_period(cash_flows)
2.6