📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • Question

      A project requires an initial investment of ₹10,00,000

      and is expected to generate cash inflows of ₹4,00,000 per annum for 3 years. The Payback Period (in years) is:
      A 2.5 Correct Answer Incorrect Answer
      B 2.0 Correct Answer Incorrect Answer
      C 3.0 Correct Answer Incorrect Answer
      D 2.75 Correct Answer Incorrect Answer

      Solution

      Payback Period = Initial Investment / Annual Cash Inflow = 10,00,000 / 4,00,000 = 2.5 years.

      Practice Next
      ask-question