Discounted Payback Period Calculator Tool

Discounted Payback Period Calculator

Discounted Payback Period Calculator

Discounted Payback Period Calculator

Component Description
Initial Investment The initial amount invested in a project.
Annual Cash Inflows The annual cash inflows generated by the project.
Discount Rate The rate used to discount future cash flows to their present value.
Discounted Payback Period The time it takes to recover the initial investment, considering the time value of money.
Formula Calculate the discounted cash inflows for each year and determine the cumulative total until it equals the initial investment.
Purpose Used to evaluate the profitability and risk of an investment project by considering the time value of money.

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