What is the payback period if the initial investment is Rs. 50 crores and the firm has cash flows of 20 crores in a 1st year, Rs. 25 crore in a 2nd year, Rs. 25 crores in a 3rd year and Rs. 12 crores in 4th year? (Answer to be mentioned in years)
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Payback period is 3 year.(20+25+25) in 3rd year inflow crosses ₹50cr.
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