Pay-back Period with constant annual cash flows is calculated as :

CS Executive · Financial and Strategic Management · PYQS · June 2022
Pay-back Period with constant annual cash flows is calculated as :
(A) Initial Investment/Annual Cash Flow
(B) Initial Investment * Annual cash flow
(C) Annual Cash Flow/Initial Investment
(D) None of the above

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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