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Hi..
I want to calculate the simple payback method.The initial cost is $165,000.
There are some cost incurred in year 0 as well.e.g working capital-$15,000,
equipment cost-$23,000,retrenchment cost-$12,000.The total cost in year 0 is $191,000.
So I need to take $191,000 OR $165,000 to calculate the payback period?Thank you..
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