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Operating Cash Flow (OCF)= EBIT + Depreciation + Taxes

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Operating Cash Flow (OCF)= EBIT + Depreciation + Taxes.


Definitions:

Payback Period

is the duration needed to recoup the cost of an investment, calculating the time it takes for returns to cover costs.

Average Accounting Return

A financial ratio that compares the average net income to the average investment made in a company.

Payback Method

A method in capital budgeting that measures the duration needed to recover an investment's expenses.

Short-Term Projects

Initiatives or tasks that are expected to be completed or yield results within a relatively brief period, typically less than one year.

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