Respuesta :
The Payback period states the period within which the investment funds are recoupened. The even net cash flow shows that the cash inflows are positive than cash outflows.
The computation of the payback period when the company experiences an even net cash flow would be:
[tex]P=\frac{I}{n}[/tex]
Here, P is the payback period, I is the initial investment and n is net cash flow in each period. Therefore, the payback period will be equal to the initial investment divided by net cash flow per period.
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