Dear Sir,
There is an MCQ where i calculated the payback correctly but don't understand the answer:
Answer : A : Payback period = 1 + (19,750/33,250) = 1.59 years or 1 year 7 months to the nearest month.
Choice :
A 1 year 7 months
C 1 year 5 months
Isn't C : 1 year 5 months closer then A 1 year 7 months to 1.59 years?
Ask the Tutor ACCA FM
To the nearest Month
8y ago#1There are 12 months in a year!
So 0.59 of a year = 0.59 x 12 = 7.08 months
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