Payback period & discounted payback period / Principles of finance / Episode 3

In this tutorial, we explain both the payback period rule and the discounted payback period rule as capital budgeting tools. We also offer a comparison with the net present value (NPV) rule.

You can find the payback period calculator and the solution to the "test your knowledge" exercise here:
www.initialreturn.com/payback-period/

00:00 Intro
00:37 Payback period
05:29 Discounted payback period
08:57 Comparison with the NPV rule
12:42 Test your knowledge

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