Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment considering discounting.
Posts tagged as “Net Cash Flows”
Net Present Value (NPV) shows the numerical cash value return from the investment project with taking discounting into consideration.
Average Rate of Return (ARR) gives the annual Net Cash Flows (or net profits) from a project as a percentage of the initial cost of the investment.
Payback Period (PBP) gives the length of time required for Net Cash Flows (or net profits) to pay back the initial capital cost of the investment.
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
Internal Rate of Return (IRR) of An Investment
BUSINESS MANAGEMENT, FINANCE and INVESTMENT APPRAISAL
Internal Rate of Return (IRR) shows the actual percentage rate of return from the investment considering discounting.