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What is the discounted payback period?

帮考网校2020-10-12 13:50:40
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The discounted payback period is a financial metric used to evaluate the time it takes for an investment to generate enough cash flow to recover its initial cost, taking into account the time value of money. It is calculated by determining the point in time at which the discounted cash flows from an investment equal its initial cost. The discounted payback period is considered a more accurate measure than the traditional payback period, which does not take into account the time value of money.
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