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Q. Explain about Pay Back Method?
Pay Back Method (PB) :- The payback process is the simplest method. This method computed the number of years required to pay back the original investment in a project. There are two processes of calculating the Payback Period:
Payback Period (PB) = Investment / Constant Annual Cash Flow
Formula:-
PB = Completed Year + Amount required to equalise the investment/ Amount received during the period
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