Talk:Discounted payback period

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CF = Cash Flow, € DCF = Discounted Cash Flow, €0y (= € @ ref.y=0) ROR = Rate Of Return, € earned / € invested / y, % per year (or per time interval chosen) NPV = Net Present Value, €0y IRR = Internal Rate of Return (ROR to have NPV=0) PB = Pay Back period, y DPB = Discounted Pay Back period, y T = project duration, y

INPUT => OUTPUT CF => PB(ROR=0, time to get NPV=0) CF,T => IRR(ROR to get NPV=0) CF,ROR => DPB(time to get NPV=0) CF,T,ROR => NPV

EXAMPLE ROR 10,0% T y* CF € Total € DCF €0y NPV €0y IRR % 0 -100 -100 -100 -100 1 20 -80 18,2 -81,8 -80 2 20 -60 16,5 -65,3 -45 3 20 -40 15,0 -50,3 -22 4 20 -20 13,7 -36,6 -8,4 5 20 0 12,4 -24,2 0 6 20 20 11,3 -12,9 5,5 7 20 40 10,3 -2,6 9,2 8 20 60 9,3 6,7 11,8 9 20 80 8,5 15,2 13,7 10 0 80 0,0 15,2 13,7

  • or month, or any uniform time interval (then ROR is based on that time interval).

PB = 5 y (ROR=0) DPB = 7.3 y (ROR=10%)




EXAMPLE