Tara & Co. ("The Company") is a private sector electrical engineering company that is in existence for the past four decades. Mr. Bhushan is the founder of the company and is the existing Chairman and Managing Direct

Tara & Co. ("The Company") is a private sector electrical engineering company that is in existence for the past four decades. Mr. Bhushan is the founder of the company and is the existing Chairman and Managing Director. Geeta is a finance professional and brings rich experience to the company. Currently, Geeta is the Chief Financial Officer of the Company. Tara & Co is engaged in manufacturing, installation and maintenance of low voltage electricity cables. Their main customer base is Government and private sector electric utilities. The Company prefers taking short term projects with fast turnaround and payment cycles. Geeta is of the opinion that a change in strategy is required. The Company should consider bidding for longer term projects which have potential for earning higher return on invested capital, assured cash flows and known existing clients. Four such projects are identified by the marketing team. The Company has the capacity to undertake all the four projects if they meet the required criteria. Cut-off rate of return is 18% Period of payback should not exceed 6 years. Key financials are given below : Proposal Investment (₹ in crore) Annual Net Cash Inflows (after tax before depreciation) (₹ in crore) Service Life (In Years) PVF @ 18% A 300 73 11 6.18 B 850 95 18 19.67 C 925 125 12 7.29 D 250 38 10 5.23 Rank the proposals A to D according to payback period. Which proposals can be accepted ?