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What is the traditional payback period

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Reference no: EM133116695

Consider the following data on a proposed investment:

  • Investment required: sh.150,000
  • Annual cash inflows: sh. 45,000
  • Life of the investment: 5 years
  • Salvage value: 0
  • Discount rate: 12%

Required:

a) What is the traditional payback period?

Reference no: EM133116695

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