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Management · Q111

Management Accounting

Graduate and Post Graduate · Management · question 111

Q111

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

A.
3.34 years
Answer
B.
4.34 years
C.
5.34 years
D.
6.34 years

Answer: Option A

Solution

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