Talk:Discounted payback period

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