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If net initial investment is 6850000 and uniform increases yearly cash...

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

Answer & Solution
Correct Answer: Option A
Payback period = Net initial investment ÷ Uniform increases yearly cash flows
= $6850000 ÷ $2050000
= 3.34 years.
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