[Verse 1] You've got a project on the table now Initial cost is bringing you down Management wants to know the deal How long till we break even for real Simple payback is the basic way Count the years till cash flows pay Add them up without any fuss Till they equal what we discuss [Chorus] How long, how long, till we get our money back Simple payback keeps us on track Divide the cost by yearly flow That's the time we need to know How long, how long, till we see the gain Payback methods ease the pain But remember what they cannot show Time value makes the real cash flow [Verse 2] But wait there's more to this equation Money today beats future payment Discounted payback takes the stage Present value is all the rage Take each cash flow year by year Discount back to now so clear Add them up at present worth Till initial cost comes to earth [Chorus] How long, how long, till we get our money back Discounted payback keeps us on track Present value year by year Till the payback point is here How long, how long, till we see the gain Payback methods ease the pain But remember what they cannot show Profitability's the way to go [Bridge] Simple payback ignores the time Discounted version works just fine But both methods have their flaws They don't follow all the laws What happens after payback ends Neither method comprehends Risk and return stay out of sight These tools alone won't make it right [Verse 3] Use them both as screening tools Quick and dirty decision rules Liquidity risk they help you see How fast cash comes back to thee But don't stop at payback time NPV and IRR will shine Payback starts the analysis Complete evaluation gives you bliss [Chorus] How long, how long, till we get our money back Simple payback keeps us on track Divide the cost by yearly flow That's the time we need to know How long, how long, till we see the gain Payback methods ease the pain Just the first step in the dance Of complete financial finance [Outro] Payback period shows the time But profit's the ultimate climb
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