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Discounted Payback

Discounted Payback

THE DISCOUNTED PAYBACK

THE DISCOUNTED PAYBACK Discounted payback period is the length of time required for an investment’s discounted cash flows to equal its initial cost. In general, if we use a discounted payback rule, we won’t accidentally take any projects with a negative estimated NPV, but this argument assume the cash flows, other than the first, are all positive. If they are

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