The payback method is called a discounted cash flow technique.

Name: The payback method is called a discounted cash flow technique.
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The payback method is not considered a discounted cash flow technique because it does not take into account the time value of money. Instead, it looks at the amount of time it takes to recover an initial investment. Discounted cash flow techniques, such as net present value and internal rate of return, do take the time value of money into consideration.

The Payback Method Is Called a Discounted Cash Flow Technique