Basics of Capital Budgeting Evaluating Cash Flows

An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be _________?

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An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be _________?

A. 3.46 years
B. 2.46 years
C. 5.46 years
D. 4.46 years

In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

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In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

A. greater annual annuity method
B. equivalent annual annuity
C. lesser annual annuity method
D. zero annual annuity method