Initial Outlay Formula
Divide the cash outlay which is assumed to occur entirely at the beginning of the project by the amount of net cash inflow generated by the project per year which is assumed to be the same in every year. The formula for the payback method is simplistic. Formula For Calculating Net Present Value Npv In Excel Next the second column Cumulative Cash Flows tracks the net gainloss to date by adding the. . Internal Rate of Return - IRR. Payback period is the time in which the initial outlay of an investment is expected to be recovered through the cash inflows generated by the investment. As mentioned above Payback Period is nothing but the number of years it takes to recover the initial cash outlay invested in a particular project. For programs that follow the federal fiscal year October 1 to September 30 the rates are still applied using the LEAs fiscal year as the basis. Supposing you have the initial outlay in B2 a series of f