The Improvement of the Methodological Approaches to Calculating the Payback Period for Investment in order to Estimate Expenses on Establishing the Economic Security Service of an Enterprise

Abstract

The aim of the article is to improve the methodological approaches to calculating the payback period for investment in order to determine the payback period for expenses on establishing the economic security service of an enterprise. It is found that the source of payback of investment at the enterprise level is cash flow product. These revenues (the result) go to formation of a cash flow (expenses) used to finance investment and financial activities. There proposed methods for determining the gross, net, actual, and specified payback periods for advanced investments in the long-term, which use the accumulated product of cash flow or accumulated cash flow as a source of financing. Analytic relationships between the gross, net, current, and specified payback periods for advanced investments that take into account the relationship between the accumulated gross, net, current and specified cash flows are proposed. The considered options for payback of advanced investment at the enterprise level will provide an opportunity to develop methods for determining the payback period for expenses on establishing the economic security service of an enterprise.

Keywords

• economic security service of an enterprise; methods for calculating the payback period for expenses; short-term period; payback of investment; gross
• net payback periods for advanced investments
• gross
• net cash flows
• cash flow product