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What is Discounted pay back period?
Answer:
Period is not involved with the time value of money and it doesn't even get considered whereas discounted pay back period is another form which involves this and have the real value of cash inflows which are measured in current amount of money which are given as a discount amount. The rate with which they are given at any interest rate are called as Discount rate.
Payback period= year before recovery+ unrecovered cost at the start of year/ cash flow during the year
Payback period= year before recovery+ unrecovered cost at the start of year/ cash flow during the year
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