Pay Back Comparison Method

 Another method is used by the process planner to justify the investment of capital on equipments or machines are pay back comparison method.

Payback period in years =     Investment cost in Rs. / (Annual profits - Annual operating expenses)

However, the process planner must have the overall cost calculation knowledge of materials, costs, tooling costs, existing machine capacities, etc. to prepare a good process plan, which should meet the overall efficiency of the process industry.