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CAPITAL INVESTMENT APPRAISAL

Discounted Payback Period

Allows for the time value of money by calculating the present value of the future
cash flows prior to identifying the payback period.

Example…. Continued:

Assume a relevant discount rate of 8%. Calculate the discounted payback period.

Initial R10 000 capital
repaid close to the end of
the 3 year.
rd

.

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