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Please explain to me the formula to use for the Discounted Payback using PERCENTRANK Time period 0 1 2 3 4 5 6 7 Cash
Please explain to me the formula to use for the Discounted Payback using PERCENTRANK
| Time period | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
| Cash flow | -$575 | $190 | $190 | $190 | $190 | $190 | $190 | $190 | |
| Disc. cash flow | -$575.00 | $169.64 | $151.47 | $135.24 | $120.75 | $107.81 | $96.26 | $85.95 | |
| Disc. cum. cash flow | -$575.00 | -$405.36 | -$253.89 | -$118.65 | $2.10 | $109.91 | $206.17 | $292.11 | |
| Intermediate calculation for payback | 3.676 | 3.877 | 3.983 | 4.019 | 6.142 | 8.399 | |||
| Payback using intermediate calculations | 3.983 | ||||||||
| Discounted Payback using PERCENTRANK | Ok because cash flows follow normal pattern. |
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
