Question

Annual Cost Saving ₹4,00,000; Useful life 4 years; Cost of the Project ₹11,42,000. The Payback period would be-

A 2 years 8 months Correct Answer Incorrect Answer
B 2 years 10 months Correct Answer Incorrect Answer
C 3 years Correct Answer Incorrect Answer
D 1 year 10 months Correct Answer Incorrect Answer
E 2 years and 5 months Correct Answer Incorrect Answer

Solution

PBP = 11,42,000/4,00,000 = 2.855 which implies 2 years and (0.855 *!2 months = 10.26 months)

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