The payback period is best defined as:
A) initial investment ÷ annual after-tax cash inflow.
B) annual after-tax cash inflow ÷ initial investment.
C) initial investment ÷ useful life of investment.
D) (present value of the cash flows, exclusive of the initial investment) ÷ initial investment.
E) initial investment ÷ (present value of the cash flows, exclusive of the initial investment) .
Correct Answer:
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