LJM payback periodForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › LJM payback periodThis topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts December 4, 2014 at 4:24 pm #217452 jurgaMemberTopics: 2Replies: 6☆Please advise how do I calculate payback period?New project cost $160,000. 4 years expected life and scrap value $20,000. Net cash flows are as follows: Yr1 $40,000 Yr2 $60,000 Yr 3 $80,000 Yr4 $20,000Many thanks December 4, 2014 at 5:08 pm #217522 John MoffatKeymasterTopics: 57Replies: 54461☆☆☆☆☆After 2 years they have had back 100,000, so need an extra 60,000. This will take 60,000/80,000 of the third year (or 0.75)SO payback = 2.75 yearsAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In