Discounted Payback Formula

Discounted Payback Formula. D C F C 1 r n. The Discounted Payback Period DPP Formula and a Sample Calculation We use two other figures in this calculation the PV or Present Value and the CF or Cash Flow.

Initial Project Screening Method Payback Period Lecture No from slidetodoc.com

contoh makalah otomotif contoh paklaring alfamidi contoh makalah kuantitatif contoh perhitungan ppn contoh metode scattergraph contoh modal perfect

First we must discount ie bring to the present value the net cash flows that will occur during each year of the project. B is the negative number at the end of period A. The discounted payback period formula is used to calculate the length of time to recoup an investment based on the investments discounted cash flows.

D C F C 1 r n.

Discounted Payback Period Formula There are two steps involved in calculating the discounted payback period. First we must discount ie bring to the present value the net cash flows that will occur during each year of the project. Discounted Payback Period DPP Discounted payback period is the number of years after which the cumulative discounted cash inflows cover the initial investment. DPP y abs n p.