Costing Rs 1,00,000, a project yields Rs 55,000 yearly; at a 10 percent rate, discounted payback is
AAbout 2.11 years
BAbout 1.82 years
CAbout 3 years
DAbout 2.5 years
Answer & Solution
Correct answer: A. About 2.11 years
Discounted inflows are 50,000, 45,455 and 41,322, so 95,455 is recovered in two years and 4,545 of 41,322 adds about 0.11 year.
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