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Payback period

YYousha5y ago
Hello sir! While calculating payback period (discounted & non-discounted both) should we take residual/salvage value in account ? and same question is for NPV should we calculate present value of any salvage/residual value given in question ? kindly help me in these question it's your pleasure. Thank you!
John MoffatJohn MoffatTutor5y ago#1
For both the payback period and calculating of the NPV we bring in all cash flows, including any disposal proceeds.
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