Question Detail

AMS 104 Past Questions AMS 104 1 Objective Question

Take CBT

Initial cash outlay N500,000, inflows N50,000 for 15 years. Payback period?

A 8 Years

B 15 Years

C 10 Years

Correct Answer

D 7 Years

Option C is the correct answer.

Payback Period = Initial Investment / Annual Cash Inflow = 500,000 / 50,000 = 10 years.

Divide the initial investment cost by the annual cash inflow.

Course: AMS 104

Topic: Past Questions AMS 104 1

Type: Objective

Difficulty: Not specified