Payback Period

Overview

The Payback Period is calculated below:

Worksheet Elements

The worksheet has various elements. These are described further below:

Input Assumptions

Near the top of the sheet are the Baseline input assumptions, and Sensitised input assumptions.

Right now these are set to be equal, but the Sensitised input assumption cells are the Baseline input assumption cells PLUS any change / delta, linked from the “Sensitivity Tab” - see later.

These cells are also linked back to the “peach” coloured cells in the main Model itself, so as the input values in the “Sensitity Tab” change, so does the main Model.

Payback Period & Net Contribution

These are calculations that calculate the actual Payback Period in years, and Net Profit Margin per unit, and per month.

Payback Table

This table shows the cash inflows and outflows each year. This table is needed to calculate the payback period, in years.

Payback Data Table

Here, we have a 2-way Excel Data Table. This shows how the Payback Period varies for changes in (i) the Tax rate at PoS, and (ii) Tax rate on Net Income.