Discount Payback Period

Discount Payback Period. The payback period for Project A has increased from over 4 years to over 6 years. But the simple payback period is 5 years in both cases.

Strength Of Material Me2406 Capital Budgeting Quiz Budgeting Strength Of Materials Time Value Of Money from www.pinterest.com

tes ppa bca tiu 5 psikotes tes psikotes telkom toefl prediction test tes psikotes kecermatan tiu ipdn

Discounted Payback period is another tool that uses present value of cash inflow to recover the initial investment. The concept is the same as the payback period except for the cash flow used in the calculation is the present value. It is the method that eliminates the.

The discounted payback period is a capital budgeting procedure used to determine the profitability of a project.

If the discounted payback period of a project is longer than its useful life the company should reject the project. Definition of Discounted Payback Period Discounted payback period is a capital budgeting method used to calculate the time period a project will take to break even and recover the initial investments. A discounted payback period gives the number of years it. In other words DPP is used to calculate the period in which the initial investment is paid back.