ocr: The Payback Method Ani important consideration for organisations when they consider a capital investment proposal is the amount of time that will elapse before their initial capital outlay is recovered. Indeed, itis commonly tound that compantes will have a stated policy with regard to the maximum payback cutoff period allowable for investment projects. Payback is: simply the time period, normally expressed in years, before the cash inflows from a capital investment project are equal to the cash outtlows. CIMA Definition Year Cash flows Cumulative Cash inflows Cumulative cash - E inflows equal ...
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