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Useful Formulas - Economic Formulas Simple Payback on an Investment (Years) = Net Installation Cost ($) ÷ Annual Energy Savings ($) 5-Year Cash Flow ($) = 5 Years - Payback (Years) x Annual Energy Savings ($) Simple Return on Investment (%) = [Annual Energy Savings ($) ÷ Net Installation Cost ($)] x 100
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If you would like to learn more about advanced financial calcuation of energy paybacks visit RealWinWin. |
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