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

    Question

    A project requires an initial investment of ₹5,00,000

    and is expected to generate annual cash inflows of ₹1,00,000. What is the payback period for the project?
    A 2 years Correct Answer Incorrect Answer
    B 4 years Correct Answer Incorrect Answer
    C 5 years Correct Answer Incorrect Answer
    D 6 years Correct Answer Incorrect Answer
    E 3 years Correct Answer Incorrect Answer

    Solution

    Payback Period = Initial Investment ÷ Annual Cash Inflow = ₹5,00,000 ÷ ₹1,00,000 = 5 years

    Practice Next
    More Previous year papers Questions
    ask-question