Organizational Issues Interview Question:

In a cost/benefit analysis, which of the following formula are correct?

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1. Payback period = total cost of investment / estimated annual revenue
2. Payback period = annual cost of investment * estimated annual revenue
3. Payback period = annual cost of investment / estimated total income
4. Payback period = total cost of investment * estimated annual revenue

Payback period = total cost of investment / estimated annual revenue
Submitted by: Administrator