Payback period of each project
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Refer to two projects with the following cash flows:
Year Project A Project B
0 -$200 -$200
1 80 100
2 80 100
3 80 100
4 80
What is the payback period of each project?
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Payback Period (PB) calculation give us an idea on how long it will take for a project to recover the initial investment.
If Y is the year before the full recovery of the investment I, U is the ...
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