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Cost of project is 3000000 Revenue in the first year 100000 ,second year 200000 and will be 250000 annualy after this What is payback period

Accounting Cost Accounting Financial Accounting CMA
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/02/27
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by Deleted user

Y0 is the outflow of3 million

Y2 return is100,000

Y3 return is200,000

leaves2,7 million 

2.7 / .25 =10.8 years

 

so total payback period is12.8 years

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