Monday, December 12, 2011

When computing the payback period for a capital asset with equal annual net cash inflows, which of?

When computing the payback period for a capital asset with equal annual net cash inflows, which of the following is used as the equation's numerator?


A.Expected annual cash inflow


B.Amount invested


C.Total cash inflows


D.Net cash outflow|||Payback period = ( Amount invested / Net annual cash inflow )





Answer B.

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