alleryStart learning →A firm invests Rs 4,50,000 and earns Rs 90,000 net cash a year. What is its payback?
A3 years
B4 years
C4.5 years
D5 years
Answer & Solution
Correct answer: D. 5 years
4,50,000 divided by the annual net cash flow of 90,000 equals 5 years.
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