Standard Active Last Updated: May 06, 2020
ASTM E1121-15(2020)e1

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

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.)

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.

Price:
Contact Sales
Related
Reprints and Permissions
Reprints and copyright permissions can be requested through the
Copyright Clearance Center
Details
Book of Standards Volume: 04.11
Developed by Subcommittee: E06.81
Pages: 9
DOI: 10.1520/E1121-15R20E01
ICS Code: 03.060; 91.010.99