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Pay-back Period Method Of Capital Budgeting And Evaluation

Pay-back Period Method Of Capital Budgeting And Evaluation:

Pay-back period is the time required to recover the initial investment in a project. It is one of the non-discounted cash flow methods of capital budgeting.

Pay-back period = Initial investment / Annual cash inflows

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Uneven Cash Inflows

Normally the projects are not having uniform cash inflows. In those cases the pay-back period is calculated, cumulative cash inflows will be calculated and then interpreted.

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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