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Again, note that when we add the initial investment, this is a negative number.
The discounted payback period is the length of time until accumulated discounted cash flows equal or exceed the initial investment. Use of this technique entails all the work of NPV, but its decision rule is arbitrary. Redeeming features of this approach are that (1) the time value of money is accounted for and (2) if the project pays back on a discounted basis, it has a positive NPV (assuming no large negative cash flows after the cut-off period).
The project does not pay back on a discounted basis.
NPV = -2758.72
IRR = 7.93%