Question
A project requires an initial investment of ₹10,00,000
and is expected to generate cash inflows of ₹4,00,000 per annum for 3 years. The Payback Period (in years) is:Solution
Payback Period = Initial Investment / Annual Cash Inflow = 10,00,000 / 4,00,000 = 2.5 years.
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...EKWYOT
