Mathematics · Financial Mathematics
When a capital investment project has an initial investment followed by constant annual returns, how is the non-discounted payback period calculated?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(Initial investment - residual value) ÷ annual net cash inflow
- 2(Initial investment - residual value) ÷ annual profit
- 3Initial investment ÷ annual net cash inflow✓
- 4Initial investment ÷ annual profit
Correct answer
Initial investment ÷ annual net cash inflow
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