payback period is the time required by the project to recover initial investment costs.
here in the given question initial cash flow = $500
cumulative cash flow of year 1 and 2 = $300
amount to be recover in year 3 = 500 - 300 = 200
so pay back period = 2 years + 200 / 500
= 2.4 years
Q5. Here are the projected cash flows from a proposed investment that costs $500, Describe he...
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2.
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