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ASTM E1121-15(2020)e1

Current Revision

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

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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.


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.)

SDO ASTM: ASTM International
Document Number E1121
Publication Date April 1, 2020
Language en - English
Page Count 9
Revision Level 15(2020)e1
Supercedes
Committee E06.81
Publish Date Document Id Type View
April 1, 2020 E1121-15R20E01 Revision
Oct. 1, 2015 E1121-15 Revision
April 1, 2012 E1121-12 Revision
April 1, 2007 E1121-07E01 Revision
April 1, 2007 E1121-07 Revision
Oct. 10, 2002 E1121-02 Revision
Sept. 10, 1998 E1121-98 Revision