alleryStart learning →Outlay Rs 90,000 recovers Rs 30,000 each year. The payback period is?
A3 years
B2 years
C4 years
D2.5 years
Answer & Solution
Correct answer: A. 3 years
Three yearly inflows of 30000 add up to the outlay of 90000.
Keep practising Capital Budgeting Basics
Browse all Capital Budgeting Basics questions for CA Inter, or explore more Financial Management topics.
Related questions
At 20%, Rs 60,000 received in one year has a present value of?Two projects have NPVs of Rs 12,000 and minus Rs 4,000. Combined NPV?The discount factor at 10% for year 3 is about what?Rs 1,00,000 spent yields Rs 60,000 then Rs 72,000. What is the IRR?Rs 1,00,000 spent yields Rs 40,000 a year for 3 years. NPV at 10%?Spending Rs 2,00,000 brings Rs 1,20,000 in each of 2 years. NPV at 10%?A machine costing Rs 90,000 returns Rs 1,10,000 after a year. NPV at 10%?Rs 1,21,000 is due in 2 years. At 10%, its present value is?