The formula for calculating the payback period is: Payback Period = Initial Investment / Annual Cash Flow Where: Initial Investment is the total cost of the investment. Annual Cash Flow is the net cash inflow generated by the investment each year. The payback period is expressed in years. It represents the time taken for the investment to generate enough cash flow to recover the initial investment. A shorter payback period is generally considered more favorable, as it indicates a quicker return on investment. For example, if the initial investment is $10,000 and the annual cash flow is $2,000, the payback period would be: Payback Period = $10,000 / $2,000 = 5 years So, it would take 5 years to recoup the initial investment based on the given annual cash flow.
During a reporting period, a company’s assets increase by Rs. 80,000,000. Liabilities decrease by Rs. 20,000,000. Equity must therefore?
Following data has been extracted from the records of BCG Ltd. Machine hours: 8,00,000 (Maximum), 3,00,000 (Minimum). Manufacturing Overheads (₹ in la...
Who among the following generally maintains the Audit Notebook?
We can say that the business is in profit, when:
If a firm has 100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital?
Use of cash to underrate a capital expenditure in an organisation involves an outflow of cash. This transaction will be reflected in the Cash Flow State...
What does SAP stand for?
Which of the following is the correct full form of REIT?
Which Ind AS deals with Revenue from Contracts with Customers?
Calculate the inventory turnover ratio: