[Verse 1] Company's got a project, needs one million to start Calculator in my pocket, gonna play the crucial part Simple payback tells the story, when will cash return? Divide investment by the flows, that's the rule to learn [Chorus] Count the years until you're even Simple payback makes it clear Annual cash flows are the reason When your money reappears But remember the limitation Time value gets ignored Simple payback calculation Leaves some truth upon the floor [Verse 2] Fifty thousand every year flowing back into your hands One million divided gives you twenty years to understand But wait, there's something missing from this elementary view Money's worth much less tomorrow, what are we to do? [Chorus] Count the years until you're even Simple payback makes it clear Annual cash flows are the reason When your money reappears But remember the limitation Time value gets ignored Simple payback calculation Leaves some truth upon the floor [Bridge] Discounted payback saves the day Present value leads the way Each cash flow gets reduced in size By discount rates that recognize A dollar now beats future gold That's the lesson finance told [Verse 3] Ten percent discount shrinks each year's incoming treasure chest Year one's fifty becomes forty-five, puts time value to the test Keep accumulating present worth until you reach break-even point Discounted payback period puts reality back in joint [Chorus] Count the years until you're even Now with time value intact Present value is the beacon Showing when you'll get cash back Though it handles the deflation Risk assessment's still ignored Both methods need collaboration With techniques that tell us more [Outro] Payback periods guide the start But they're just one piece of art In the analyst's toolkit wide Where better methods stand beside
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