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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Calculating Duration for a project
Does someone know the mathematical explanation (if there is one) behind calculating duration time for a project? i.e The average time the project is likely to recover its value. In questions dealing with it, the number of years are multiplied by the fraction of the discounted cash flows from the entire return phase. It just doesn’t make any sense to me? Why would you do that? Thank you.
