A The cash flows is not even Thus the Pay Back Period can be calculated by trial and error . Thus PBP for Project A 0 Initial investment / Average annual cashflow 110 (210 /5 ) which is equals to 110 /42 2 .62 years Thus the project A pay back period is shorter than project B thus Project A is recommendable . Thus the Project B has even cash inflow pay back for project B can be calculated as PBP Initial investment / annual...
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