The discounted payback rule calculates the payback period and then discounts it at the opportunity cost of capital.

Name: The discounted payback rule calculates the payback period and then discounts it at the opportunity cost of capital.
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The discounted payback rule calculates the payback period but adjusts for the time value of money by discounting future cash flows at the opportunity cost of capital. It does not discount the payback period itself.

The Discounted Payback Rule Calculates the Payback Period and Then