The discounted payback period calculates how long it takes to recover the initial investment when future cash flows are discounted at the project’s cost of capital. Unlike the simple payback period, it accounts for the time value of money, making... Read More
The discounted payback period calculates how long it takes to recover the initial investment when future cash flows are discounted at the project’s cost of capital. Unlike the simple payback period, it accounts for the time value of money, making it a more accurate measure of investment recovery.
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