ASTM E1121 - 15(2020)e1

    Standard Practice for Measuring Payback for Investments in Buildings and Building Systems

    Active Standard ASTM E1121 | Developed by Subcommittee: E06.81

    Book of Standards Volume: 04.11

      Format Pages Price  
    PDF 9 $50.00   ADD TO CART
    Hardcopy (shipping and handling) 9 $50.00   ADD TO CART

    Significance and Use

    5.1 The payback method is part of a family of economic evaluation methods that provide measures of economic performance of an investment. Included in this family of evaluation methods are life-cycle costing, benefit-to-cost and savings-to-investment ratios, net benefits, and internal rates of return.

    5.2 The payback method accounts for all monetary values associated with an investment up to the time at which cumulative net benefits, discounted to present value, just pay off initial investment costs.

    5.3 Use the method to find if a project recovers its investment cost and other accrued costs within its service life or within a specified maximum acceptable payback period (MAPP) less than its service life. It is important to note that the decision to use the payback method should be made with care. (See Section 11 on Limitations.)

    1. Scope

    1.1 This practice provides a recommended procedure for calculating and applying the payback method in evaluating building designs and building systems.

    1.2 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

    2. Referenced Documents (purchase separately) The documents listed below are referenced within the subject standard but are not provided as part of the standard.

    ASTM Standards

    E631 Terminology of Building Constructions

    E833 Terminology of Building Economics

    E917 Practice for Measuring Life-Cycle Costs of Buildings and Building Systems

    E964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems

    E1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems

    E1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems

    E1185 Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems

    E1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and Building Systems

    ICS Code

    ICS Number Code 03.060 (Finances. Banking. Monetary systems. Insurance); 91.010.99 (Other aspects)

    UNSPSC Code

    UNSPSC Code 81120000(Economics)

    Referencing This Standard
    Link Here
    Link to Active (This link will always route to the current Active version of the standard.)

    DOI: 10.1520/E1121-15R20E01

    Citation Format

    ASTM E1121-15(2020)e1, Standard Practice for Measuring Payback for Investments in Buildings and Building Systems, ASTM International, West Conshohocken, PA, 2020,

    Back to Top