alleryStart learning →A Rs 40,000 machine gives net cash flow of Rs 8,000 a year. What is its payback period?
A3.2 years
B4 years
C8 years
D5 years
Answer & Solution
Correct answer: D. 5 years
Payback = amount invested divided by annual net cash flow = 40,000/8,000 = 5 years.
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Related questions
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