alleryStart learning →A costs Rs 2,00,000 and returns 50,000 yearly; B costs Rs 3,00,000 and returns 1,00,000 yearly. Payback prefers
AProject A
BNeither
CProject B
DBoth equally
Answer & Solution
Correct answer: C. Project B
A pays back in 4 years while B pays back in 3 years, so the shorter B is preferred.
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