Calculate the payback period using discounted cash flows. Corrects the undiscounted payback period by accounting for the time value of money. Always longer than undiscounted.
Calculate the payback period using discounted cash flows. Corrects the undiscounted payback period by accounting for the time value of money. Always longer than undiscounted
Each component has a specific meaning:
Note: Interpret the discounted payback result against the thresholds and context described above.
Enter the discounted cash flows for the scenario you are assessing. Calculate the payback period using discounted cash flows. Corrects the undiscounted payback period by accounting for the time value of money. Always longer than undiscounted. Use the discounted payback result to inform your calculation.