How to Calculate Discounted Payback Period?
Discounted Payback Period calculator uses discounted_payback_period = ln(1/(1-((Initial Investment*Discount Rate)/Periodic Cash Flow)))/ln(1+Discount Rate) to calculate the Discounted Payback Period, Discounted Payback Period is a capital budgeting procedure used to determine the profitability of a project. Discounted Payback Period and is denoted by DPP symbol.
How to calculate Discounted Payback Period using this online calculator? To use this online calculator for Discounted Payback Period, enter Initial Investment (Initial Invt), Discount Rate (r) and Periodic Cash Flow (PCF) and hit the calculate button. Here is how the Discounted Payback Period calculation can be explained with given input values -> 0.059335 = ln(1/(1-((2000*12)/170000)))/ln(1+12).