Net initial investment is divided by uniform increasing in future cash flows to calculate

Solution (By Examveda Team)

Net initial investment is divided by uniform increasing in future cash flows to calculate payback period. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a breakeven point. The desirability of an investment is directly related to its payback period.