Elance Exams Answers PDF file

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Payback period is the time it takes to pay back what a project costs. For a project that costs $5,000,000 and delivers increased revenue of $500,000/month, how do you calcuate payback period?

$500,000 * 12 months = $6,000,000 payback per year
$5,000,000/$500,000 = 10 months
$5,000,000 / 12 months = $416,666 per month in payback
$5,000,000 - $500,000 = $450,000 payback period
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