# What is the payback if an investment's cost is \$45,000 and the after-tax benefit is \$2,000 per year?

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account_balance_wallet \$5

### Question Description

What is the payback if an investment's cost is \$45,000 and the after-tax benefit is \$2,000 per year?

ipesuni
School: UT Austin

We have the investment cost=\$45,000

And the net cash inflow as \$2000,as after deducting the taxes the net cash inflow=\$2000 per year.

So the payback period is given by the formula =Investment Cost/Net cash inflow =45000/2000 =22.5 year.

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Anonymous
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