Q1
Mod C
If a commercial proposal requires an upfront capital outlay of Rs. 10,00,000 and generates steady annual cash inflows of Rs. 2,50,000, what is its simple Payback Period?
Correct Option: C
Detailed Solution
Payback Period = Initial Investment / Annual Cash Inflow = Rs. 10,00,000 / Rs. 2,50,000 = 4.0 Years.
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