Duration measures the average time to recover the present value of the project if discounted at the cost of capital. However, if cash flows are discounted at the project’s IRR, it can be used to measure the time to recover the initial investment. can you please explain the difference between the present value of the project and the intial investment
The initial investment is the amount invested in the project at time 0. The present value of the project is the total of the discounted future flows from the project.