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The discounted payback period Blank _____ account for the time value of money, and the payback period Blank

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The discounted payback period does account for the time value of money, and the payback period does not.

What is discounted payback period?

A method of capital budgeting used for determining a project's profitability is known as discounted payback period. This will be done by recognizing the time value of money and by discounting cash flows of the future.

The payback period is the amount of time it takes for an asset's net cash flows to pay back the amount invested in it. It's a quick and easy technique to assess the risk of a given project.

The advantage of this method is utilized in selecting the projects as this method helps to determine the profitability of any project by identifying measures to reach the break-even point in any project.

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