Economics · Capital Budgeting
The initial outlay for a project is ₹4,10,000. The annual cash inflows from this project are as follows: First year: ₹1,60,000 Second year: ₹1,20,000 Third year: ₹1,20,000 Fourth year: ₹40,000 The payback period of the project will be:
- 13.5 years
- 23.25 years (3 years 3 months)✓
- 33.1 years
- 43 years
Correct answer
3.25 years (3 years 3 months)
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