Our online calculator will help you in calculating the discounted payback period for investment projects.
Discounted payback period is the change in the purchasing power of money, their value over time, based on this produce a comparison of current prices and prices for future years.
This concept can be understood as the period, based on which the investment in the project will give the same amount of cash flows given on the time factor (discounted) to the present, which during the same period could be obtained with alternative available for purchase the investment asset.
For investment planning and anti-crisis investment projects, the rate of the discounted payback period is very important.
The investment project is considered effective if the sum of the discounted flow of its implementation exceeds the amount of the initial investment (that is, it's payback), and if the payback period does not exceed a certain threshold (for example, the payback period for alternative investment).