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If the Annual Cash Flows Are Not an Annuity (Equal

Question 19

Multiple Choice

If the annual cash flows are not an annuity (equal each period) , payback is calculated by


A) dividing the investment required by the average annual cash inflow.
B) dividing the average annual cash inflow by the investment required.
C) accumulating the net cash flows until they equal the initial investment.
D) Payback cannot be calculated for a project with unequal cash flows.

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