If cash flows are uneven, the payback period assumes that the inflows during the last fraction of a year occur evenly.

Name: If cash flows are uneven, the payback period assumes that the inflows during the last fraction of a year occur evenly.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The payback period calculation assumes that cash inflows occur evenly throughout the year, even if they are uneven in reality. This assumption allows for a simplified calculation of the payback period.

If Cash Flows Are Uneven, the Payback Period Assumes That