How do we calculate DPP using the TI? I am getting the answer for payback period instead of DPP. NCF: -2000 (initial investment) 1000 (year 1) 800 (year 2) 600 (year 3) 200 (year 4) The actual answer for DPP is 2.95 years. But I am getting 2.33 years. Not sure where I am going wrong… help pls.
you have to define discount rate
Thanks a bunch, maratikus!!! I did not enter the discount rate… now I got it right 