Payback Period NHD Ltd.'s retail division is considering opening new retail stores in two major northeastern cities. The retail manager has submitted a plan on how to open these stores. The division plans to open one store in year 1 and another in year 2. The cash flows forecast from these stores are mentioned in the table given below: Year Cashflow (in lakhs) Year 1 -1.35 Year 2 -1.45 Year 3 1.51 Year 4 0.57 Year 5 1.53 Year 6 2.70 Year 7 1.59 Calculate the payback period in years.

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To calculate the payback period we need to find the time it takes for the cumulative cash flows to e... View the full answer