UPX Material - University of Phoenix

The DPB is computed in a similar fashion as the PB method—the only difference is that the DPB method uses the discounted cash flow. As you can see in the following, factoring in the time value of money makes the decision in line with the NPV’s outcome—ABC is the choice! Discount Payback Period . ABC 2.56 yrs XYZ 2.77 yrs ................
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