Question: Please show discounted cash flow step by step against which the calculated AR scientific basis for deciding it. 6.8.3 Discounted Payback The concept of discounted
Please show discounted cash flow step by step

against which the calculated AR scientific basis for deciding it. 6.8.3 Discounted Payback The concept of discounted cash flows for calculating payback period has emerged in recent years. It is suggested by some authors that in order to overcome the limitation The d of payback that it does not use time value of money, we may use the discounted can does flows in order to calculate the payback period. The number of periods taken in payb recovering the investment outlay as present value basis is called discounted payback and period. Obviously the discounted payback will be longer than the simple payback period. Illustration 7 A company is considering a project with an initial outflow of Rs. 1,00,000, the cash inflows from the project are expected to be as follows. Find out the payback period by traditional (regular) method as well as by discounted method @ 10% rate of discount Year Cash flows (Rs.) 20,000 N m 30,000 30,000 40,000 30,000 20,000 REDMI NOTE 5 PRO MI DUAL CAMERA Solution Year Cash Cumulative Discounted Discounte OO umulative
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