1. Definition and Importance: The cash Payback Period is the time it takes for an investment to generate enough cash flows to recover the initial investment. - It's a crucial tool for businesses to evaluate the feasibility and profitability of an investment. 2. Calculation: The formula for the Cash Payback Period is Initial Investment / Annual Cash Inflows. This calculation helps determine an investment's breakeven point. 3. Advantages: It is simple and easy to understand. It is useful for companies with liquidity concerns as it focuses on cash flows. 4. Limitations: It ignores the time value of money and doesn't consider cash flows received after the payback period. 5. Practical Applications: It is used in capital budgeting decisions and helps in risk assessment of an investment. 6. Questions Raised: How does the Cash Payback Period compare to other investment appraisal methods, such as Net Present Value or Internal Rate of Return