Hi
I have little confusion regarding calculation guys... please correct me
Pay back period = Initial cash outflow / Annual cash inflow
Initial cash outflow = 200000
Annual cash inflow = 82000
So It is 2.439 i.e 2 years 5 months and 8 days ( as per book)
I got 2.439 but 2 years 5 months and 10 days... there are similar 2-3 days difference
i'm getting from other cases of same Q.
How to calculate exactly... please tell me..
I'm doing this method to solve out
in 2.439 = 2 years
0.439*365= 160.235
160.235/30= 5.341
In 5.341= 5 months
0.341*30 =10.23
In 10.23= 10 days
I have done just guess work in my knowledge
Please correct me... and tell the right way
ASAP