Discounted payback method

Discounted payback method is capital budgeting method that calculates the amount of time required for the discounted expected future cash flows to recoup the net initial investment in a project.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Discounted payback method. Capital budgeting method that calculates the amount of time required for the discounted expected future cash flows to recoup the net initial investment in a project.