Project Balance, PB(i)
Project balance isn't really a basis of comparison, but it's a useful way of looking at a cash-flow stream. It shares several common characteristics with the discounted payback period, so it is relevant to present here.
The project balance, PB(i), is a profile that shows the equivalent amount of dollars invested in, or earned from, the proposal at the end of each time period over the life of the cash-flow stream. If the proposal is started but cancelled at time t, PB(i)t shows the equivalent profit or loss at that time. Project balance uses exactly the same computations as the discounted payback period, DPP(i), except that it continues through the entire cash-flow stream. It doesn't stop when the running sum becomes positive. ...
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