What is the payback period of a project with the following expected cash inflows (in millions)...

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What is the payback period of a project with the following expected cash inflows (in millions) as shown below? Suppose that t

Answer 1

Answer #1

Payback period = Year before full recover ie Year 5 + (Unrecovered Cost at start of the Year ie 40 )/(Cash flow during the Year ie 90)

=5+40/90

=5.4 Years

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Answer 2

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