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How to calculate payback period?

Hi guys,

does anyone know the correct formula to calculate payback period for buss3 exam

I've been going over some past exams and I just can't seem to be able to do this question, probs down to my teacher never properly explaining it..

The question is this - calculate the payback period and the data:

initial investment - 10m

year 1 = 2.4m
year 2 = 3.0m
year 3 = 4.0m
year 4 = 5.8m

thanks for any help! :smile:

Reply 1

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