Question：The payback period is the number of years that it takes a business to recover its original investment from net returns calculated on what basis?
A. After deprecation but before taxation.
B. Before depreciation but after taxation.
C. After deprecation and after taxation.
D. Before depreciation and before taxation.
The correct answer is: Before depreciation but after taxation.
The returns should be calculated before depreciation but after taxation. Taxation is a cash flow, depreciation is not.
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