Discounted payback period calculator
Written by:Abraham A.Finance.ThinkAndDone.com provides you online and windows calculators to calculate discounted payback period from a series of cash flows and the discount rate. Discounted payback period method is one of many DCF techniques used by financial analysts to evaluate capital projects. An organization usually sets up a target time period in which it expects to breakeven on the investment; and an organization usually accepts a projoect if the actual discounted payback period calculated from future cash flows is less than the target payback period.
Online discounted payback period Calculator
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type in the authorization code in the box located below:
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ResultsDiscounted Payback Period: 2.96 years.
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Input DataPlease enter the reinvestment rate (WACC) aka discount rate:Please enter the net cash flows in the space below: |
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Instructions
To use this online calculator to calculate discounted payback period, you need to type in series of net cash flows along with the discount rate otherwise referred to as weighted average cost of capital. Assume you are analyzine a project with these series of cash flows -50000 15000 15000 15000 15000 15000 and the company's expected rate of return is 9%. Follow the steps outlined below to find discounted payback period with this online calculator
- At first type in the series of cash flows each separated by a space in the text box on calculator screen. -50000 15000 15000 15000 15000 15000
- Then type in 9 as the discount rate
- Finally clicking on CALCULATE button will display the discounted payback period of 2.96 years
