discounted payback

Is Payback Period Discounted?

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Is Payback Period Discounted? The discounted payback period is a capital budgeting procedure used to determine the profitability of a project. A discounted payback period gives the number of years it takes to break even from undertaking the initial expenditure, by discounting future cash flows and recognizing the time value of money. How do you

How Do You Calculate Payback Period For Equipment?

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How Do You Calculate Payback Period For Equipment? Answer: The payback period is calculated by dividing the total investment costs by the amount of yearly savings. These yearly savings are calculated by multiplying the energy price by the amount of kWh one can save on a yearly basis. What is the equation for payback period?