The end of work on any project ends with the calculation of the period or the payback period. There are certain time limits, upon reaching which, any enterprise must be profitable. Otherwise, the project is considered unprofitable. In this case, to save the work done (if the result is recognized
unpromising, they begin to change economic indicators: they reduce the cost of materials, equipment, technology. To calculate the payback of a project, the minimum you need to know is the expected profit and capital investments, both one-time and recurring. In the first case, the calculation is quite primitive. The payback of the project is calculated by dividing the one-time capital investment by annual profit.
For example: during the construction of the tool workshop, resources were invested in the purchase of a land plot, construction materials, payment for labor, and the purchase of equipment. Roughly speaking, in the first years of existence, the contents of the building do not require repairs. Therefore, the project payback will be 3 million rubles (land) + 15 million rubles. (building materials) + 10 million rubles. (payment of labor) + 200 million rubles. (purchase and installation of equipment) / 50 million rubles. = 4,56 years.
Probably, even a layman understands that such a calculation is quite primitive: in any case, investments do not end at the stage of commissioning the building. Wages for workers, payment of energy, equipment repair, and much more are included in operating costs, which significantly affect the payback period of the project. One and the same formula cannot always be applied in different conditions, spheres of production or services.
The payback period of the investment project will be calculated correctly only if the current maintenance costs are taken into account (and if the project provides for reconstruction or innovations in existing enterprises, then it also takes into account the savings in operating costs).
For example: an additional way to receive freight trains was built and commissioned at the railway station. Then the payback of the project will be limited to a period that is equal to the reciprocal of the discount rate. This ratio, in turn, is comparable to the ratio of capital costs to the product of the difference in operating costs and additional costs and the difference in unit and share of all tax payments. Agree, a rather confusing definition. Everything looks much simpler in the form of a formula: T = 1 / E = K / (E-Edop) * (1-y).
In our example, the current expenses will be the costs of repair, lighting and depreciation of the track. The saving of operating costs must be calculated based on the estimated rate for one car-hour of downtime and the saved car-hours.
If the payback of the project is known, or rather, its period, then in the future it is easy to calculate the economic efficiency of the entire enterprise as a whole. It is determined by the internal rate of return, profitability index, net present value. It is sometimes simplified to net income. The payback period of the project, the calculation of which we presented last, just fits this case.