Discounted payback
Discounted payback is the length of time required for an investment's cash flows, discounted at the investment's cost of capital, to cover its cost.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Discounted payback. The length of time required for an investment's cash flows, discounted at the investment's cost of capital, to cover its cost.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
