Question
Project A has an initial outflow of ₹2,00,000 and
annual cash inflows of ₹70,000 for 5 years. What is the Payback Period?Solution
Payback Period = Initial Investment / Annual Cash Inflow = ₹2,00,000 / ₹70,000 = 2.857 years ≈ 2.86 years.
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