标题: Another Q [打印本页] 作者: heart 时间: 2011-7-11 19:49 标题: Another Q
If I have a project with NPV of 100 millions and the project is expected to last 8 years generating 50 millions a year, what is its discounted payback period???
I dont know how to get the initial investment in order to be able to calculate the Discounted Payback...作者: kasinkei 时间: 2011-7-11 19:49
say rate = 10%
50/1.1 = 45.45
50/1.1^2 =41.32
total covered = 86.77
50/1.1^3 = 37.56 --> total covered = 124.33 > 100
so DPB = 2 + (100-86.77)/ (124.33-86.77) = 2.352
(Linear interpolation for approximation).
CP作者: draz 时间: 2011-7-11 19:49
Thank You CP you are really helpful作者: LokiDog2 时间: 2011-7-11 19:49
just thought about it a little more - since you have 50 Mill payout - and 100 Mill was NPV - it has to be a DPB between 2 and 3 years. (irrespective of the rate of return assumed).
