Respuesta :
The discounted payback rule states that a company will accept a project if the net present value is zero.
What do you understand by discounted payback period?
The discounted payback period is a capital budgeting technique used to assess a project's profitability. A discounted payback period calculates the number of years it will take to recover the initial investment by discounting future cash flows and taking time value of money into account. A project's viability and profitability are assessed using the measure.
The more straightforward payback period method, which simply divides the project's total cash outlay by its average yearly cash flows, is less accurate because it only considers a single initial investment and ignores the time value of money in determining whether or not to take on a project.
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