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What is the main difference between payback period and discounted payback period?

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Question added by Atiqur rahman
Date Posted: 2016/12/23
Sasikumar Balakrishan Korangode
by Sasikumar Balakrishan Korangode , Group Finance Manager , Atyaf Holdings Co. W.L.L

The major difference between payback period and discounted payback is that in Discounted payback the payback period is calculated considering net present value of cash flow while in normal payback the payback period is calculated without considering the net present value of cash flow. Hence the break-even point ( period) will be longer in Discounted payback while compare to normal payback.

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