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.
Discounted Payback Period (DPP) = A + (B / C) Where, A - Last period with a negative discounted cumulative cash flow B - Absolute value of discounted cumulative cash flow at the end of the period A C - Discounted cash flow during the period after A. An initial investment of Rs.50000 is expected to generate Rs.10000 per year for 8 years.