Example: Discounted Payback Period
{"Image DocumentName": "Example: Discounted Payback Period", "Image ImageDescription": "Consider the example of Projects X and Y. Both projects have a discounted payback period close to three years. Project X actually adds more value but is not distinguished from Project Y using this approach. Cash Flows. Discounted. Accumulated Discounted. Year. Project X. Project Y. \u2013\u00a3 \u2013 \u2013 LOS: Calculate and interpret the results using each of the following methods to evaluate a single capital project: net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, average accounting rate of return (AAR), and profitability index (PI). Example: Discounted Payback Period. Copyright \u00a9 2013 CFA Institute.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}