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.
This Question Belongs to Management >> Management Accounting
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