In this case, after reviewing all three methods for assessing viability of the project, the discounted payback would seem to be the best option. It takes into consideration the time value and provides a better evaluation of different cash flow projects. This method takes into account any possible gains or losses that may occur over its lifetime, which can help to provide an indication of the long-term value of a project. Furthermore, by calculating the payback period at a discount rate it also takes into consideration any external factors such as inflation or risk which may affect a project’s success thus providing an even clearer picture when it comes to predicting future returns.
You can get a good idea about how much profit you could make if everything works out as expected by using the discounted payback period. The information will help you identify the projects that are likely to have a significant increase in value over time, allowing resources to be allocated to maximum effect.