Y Ltd. is considering a project which requires initial investment of ₹20,000. Cost of capital is 10%. Estimated cash flows after tax are as follows: Year 1: ₹8000 Year 2: ₹5000 Year 3: ₹6000 Year 4: ₹7000 Year 5: ₹5000 W
CS Executive · Financial and Strategic Management · PYQS · December 2023
Y Ltd. is considering a project which requires initial investment of ₹20,000. Cost of capital is 10%. Estimated cash flows after tax are as follows: Year 1: ₹8000 Year 2: ₹5000 Year 3: ₹6000 Year 4: ₹7000 Year 5: ₹5000 What is the project's discounted payback period ?
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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