If 
varies directly with 
and if 
when 
find 
when 
is 5.
Definitions:
Payback Period
The time required for the return on an investment to repay the sum of the original investment.
Annual After-Tax Net Income
The amount of money a company earns in one year after all expenses and taxes have been deducted.
Profitability Index
A calculation that measures the relative profitability of an investment by dividing the present value of its future cash flows by the initial investment cost.
Payback Period
The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment, used to assess the profitability or risk of an investment.
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