Write the formula for determining payback period of a cash flow project.

4 years ago
Financial Management

Payback period represents the length of time required for the stream of cash proceeds generated by the investment, to be equal to the original investment. In other words this is the time required for the project to pay itself. The formula is

Payback period = Original investment/Annual cash flow

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Sanisha Maharjan
Sanisha Maharjan
Jan 18, 2022
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