If net initial investment is $6850000 and uniform increases yearly cash flows is $2050000, then payback period will be

A. 3.34 years

B. 4.34 years

C. 5.34 years

D. 6.34 years

Answer: Option A

Solution(By Examveda Team)

Payback period = Net initial investment ÷ Uniform increases yearly cash flows
= $6850000 ÷ $2050000
= 3.34 years.