Professional Documents
Culture Documents
Discount Payback Period
Discount Payback Period
Discount Payback Period
a) The discounted payback period is measured by discounting the net cash flows of each year and
cumulating the discounted cash flows until the amount of initial expenditure is realized.
Payback period is measured by dividing the total initial investment by the yearly cash flow.
b) DPP can be used in the comparison of two or more project alternatives and in a cost-benefit
analysis.