775% Discounted Payback Period (continued) Example 2 Answer Cash Discounted Yet to be Percent of Year CF recovered Recovered/Inflow (10,000) (10,000) (10,000) 4.000 3,636 (6,364) Since there is a balanc 3719 (2645 whids willba 10,000 7,513 year 3596 3 3 Not used in 8,000 5,464 cision Discounted Payback 2.35 years 2645 #2.35 Net Present Value (NPV) Discounts all the cash flows from a project back to time 0 using an appropriate discount rate, r: 1 + r accept if NPV>0 reject if NPV