breakeven time

(redirected from Break Even Time)

Breakeven Time

The length of time for the discounted value of future cash flow from an investment to equal the cost of making the investment. That is, if one spends $1,000 buying a stock, the breakeven time is the time it takes for the investor to make at least $1,000 from that stock. A longer breakeven time equates to higher risk for the investment.

breakeven time

The number of years a convertible security must be held in order for its extra current income to cover the excess of its market price over its value in terms of common stock (that is, annual interest on the bond minus annual dividends on the stock). For example, a 10% coupon bond selling for $1,000, convertible to common stock with a market value of $600 and paying no dividend, would have a breakeven time of $400/$100 , or 4 years.
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But VAT as such will not influence break even time frames on new ventures because those costs would have been incorporated.
If you drive less per day, say 40 kilometres on an average, the break even time balloons to seven and a half years.
Having been through the numbers that the council had on new build, ultimately it would require a pounds 20 million investment from us after grant assistance and require 12-15 years break even time.