Dear Anna,
Calculate the PV of each year's cash inflow.. Example1st year 1/1.12*40,000 = 35720. 2nd year 1/1.12^2*40,000=31,920 and so on..
Then for calculating payback, add this discounted figures. The payback would be between 3 to 4 years.
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Abdul Naser Parkar
Analyst
Al Nasr, Al Sadd Doha
Qatar
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Original Message:
Sent: 05-26-2021 04:42 PM
From: Anna Ayson
Subject: Discounted payback period question
Can you please assist how I should calculate the 20% discount of $40,000 cash inflow?
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Anna Ayson
Accountant
Renton WA
United States
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