Discounted payback


Also found in: Acronyms.

Discounted payback

The length of time needed to recoup the present value of an investment.
References in periodicals archive ?
Discounted payback period [theta] (where [theta] [less than or equal to] N) is calculated with the consideration of time value of money using equation (2).
The perceived weaknesses of some of these models have resulted in the development of 'modified' models, such as the modified internal rate of return (MIRR), the profitability index (PI), and the discounted payback period (DPB).
The ASHRAE simple payback period (SPP) is compared to a discounted payback limit or scalar of 13.
Furthermore, the project pays back within two years following the Discounted payback approach.
48 IRR 50% Discounted Payback and 3 years (1,875) (37) 2,071 11,669 Accumulated CFFA.
The PFS estimates that, based on the key parameters described below, the Net Present Value (NPV8) of the FerrAus Pilbara Project, using an 8 per cent discount rate (real, after tax), ranges from A$1,120 million to A$1,340 million, with an after tax Internal Rate of Return (IRR) return of between 24 and 26 per cent and a discounted payback of 4 years.
Table 3 reports the results of the economic analysis for the "base case" described above, in terms of annual savings, net present worth (NPW), and discounted payback period (DPP).
The seminars will also examine allocating company resources according to a prioritised list of projects as well as identifying project evaluation and analysis techniques including the discounted payback method, internal rate of return, net present value and profitability index.
Assuming it requires a capital investment of $15 million to build the facility, a simple discounted payback calculation will approximate the financial breakeven point and net present value of the alternative.
The capital budgeting techniques known as (1) payback, (2) discounted payback, (3) net present value, (4) internal rate of return, (5) modified internal rate of return, and (6) the profitability index, may be used to examine the expected cash flows of each potential project.
Accounting rate of return 4 18 6 26 3 17 Undiscounted payback 1 5 3 13 2 11 period (UPP) Discounted payback period 2 9 4 17 5 27 Net present value (NPV) 1 5 4 17 3 17 Internal rate of return 12 54 4 17 3 17 (IRR) Profitability index 0 0 0 0 2 11 Other 2 9 2 10 0 0 Total (b) 22 100 23 100 18 100 Idaho Survey, 2001 Rank Decision criteria 1 2 3 (No.