Discounted Payback Period - Definition, Formula, and Example
WEBJun 19, 2024 · A discounted payback period determines how long it will take for an investment's discounted cash flows to equal its initial cost. The rule states that investment can only be considered if its discounted payback covers its …
Discounted Payback Period: What It Is and How to Calculate It
WEBJun 30, 2024 · The discounted payback period is a simple metric to determine if an investment will be sufficiently profitable to justify the initial cost. It uses the predicted returns from the investment,...
Discounted Payback Period | Formula + Calculator - Wall Street …
WEBOct 25, 2022 · What is the Discounted Payback Period? The Discounted Payback Period estimates the time needed for a project to generate enough cash flows to break even and become profitable.
Discounted Payback Period - Definition, Formula, and Example
WEBThe discounted payback period is used to evaluate the profitability and timing of cash inflows of a project or investment. In this metric, future cash flows are estimated and adjusted for the time value of money.
Discounted Payback Period: Definition, Formula & Calculation
WEBFeb 6, 2023 · What Is a Discounted Payback Period? Discounted payback period refers to time needed to recoup your original investment. This includes interest, using a discounted cash flow. In other words, it’s the amount of time it would take for your cumulative cash flows to equal your initial investment.
Payback Period & Discounted Payback Period | Example - Accountinguide
WEBDiscounted Payback period is the tool that uses present value of cash inflow to measure the time require 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.
Discounted Payback Period: Definition, Formula, Example & Calculator
WEBThe discounted payback period is a measure of how long it takes until the cumulated discounted net cash flows offset the initial investment in an asset or a project. In other words, DPP is used to calculate the period in which the initial investment is paid back.
How to Calculate Discounted Payback Period in Excel
WEBJul 4, 2024 · This article shows how to calculate discounted payback period in Excel. Here, we'll use PV, IF and VLOOKUP functions to get payback period.
Discounted Payback Period Formula – With Examples
WEBCalculate the discounted cash flow for each period by using the following formula : Discounted Cash flows = (Cash flows)/ (1+r)^n. where r is the cost of capital or 10% and n is the time (for this example, we have four years, so n spans from zero to four).
Discounted Payback Period Calculator | Good Calculators
WEBThe calculator below helps you calculate the discounted payback period based on the amount you initially invest, the discount rate, and the number of years. We have made it easy for you to use and get the right DPP figures: