Discounted Payback Example . Consider the 2 scenarios again but with a discount rate of 10% per year. $70,000 $80,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 TTTTTTT TT | .. $4,000 $3,000 $1,000 4 5 6 1 2 3 4 5 6 1 2 3 $(200,000) $(200,000) Discounted Payback Example N Discounted Cash Flow A Cumulative A Discounted Cash Flow B Cumulative B Project A -200,000 Project B -200,000 50,000 50,000 50,000 70,000 80,000 50,000 50,000 50,000 50,000 4,000 3,000 1,000