Question

Project Z costs ₹10 crore; it yields ₹3 crore annually for 4 years and ₹5 crore in Year 5. Cost of capital is 10%. Which statement is true?

A Fast payback but low NPV
B Longer payback but higher NPV
C Both payback and NPV favorable
D Both payback and NPV unfavorable
E Can't say without IRR
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