Megill<ref name=pt02r12 /> points out a useful rule of thumb: a rough, reciprocal relationship exists between payout and DCFROR. A project that pays out in 3 years will have a DCFROR of about 33%; one that pays out in 4 years will have a DCFROR of about 25%. | Megill<ref name=pt02r12 /> points out a useful rule of thumb: a rough, reciprocal relationship exists between payout and DCFROR. A project that pays out in 3 years will have a DCFROR of about 33%; one that pays out in 4 years will have a DCFROR of about 25%. |