I have read the help information on Cumulative Payback and After Tax Cash Flow, however it was not of much help. For example it seems to say that the After Tax Cash Flow is the net cash flow, but is all cash positive and negative included in these cash flow calculations which arrive at the net cash flow? What is included and what is not?
If all of the cash flow positive and negative is included in the After Tax Cash Flow, then why is the Cumulative Payback needed?
What is included in the Cumulative Payback that is not included in the After Tax Cash Flow?
When I do a simple payback calculation on my own, the payback is similar to the After Tax Cash Flow where it changes from negative to positive. The Cumulative Payback is almost double the number of years compared to my simple payback and the After Tax Cash Flow when it turns positive. So I am inclined to think that what I am used to people calling the payback on a pv system is more likely reflected by the After Tax Cash Flow rather than the Cumulative Payback, but I am not sure of that. Is this true?
Please explain to me in more detail than it does in the help information, what are the differences between the After Tax Cash Flow and the Cumulative Payback, and which should I be telling a client is the payback on the system?
Thank you,
Lotus