Deterding, S., Dixon, D., Khaled, R. and Nacke, L. (2011a) âFrom Game Design Elements to Gamefulness: Defining âGamificationââ, Envisioning Future Media Environments - Conference proceedings, MindTrekâ11, Tampere, pp. 9â15.
The payback method is a simple way to evaluate the number of years or months it takes to return the initial investment. The payback period is usually expressed in years. Start by calculating net cash flow for each year: net cash flow year one = cash inflow year one - cash outflow year one.
A shortcut commonly used in calculating free cash flow is that we add âafter taxâ interest. This takes care of âputting interest backâ into net income and âadjusting taxesâ for the âwhat ifâ part of the exercise all at once.