The initial investment a project requires ₹5,00,000, the expected annual cash inflow is ₹90,000 for ten years. Determine the pay back period.

CS Executive · Financial and Strategic Management · PYQS · December 2021
The initial investment a project requires ₹5,00,000, the expected annual cash inflow is ₹90,000 for ten years. Determine the pay back period.
(A) 5 years and 9 months (Approx.)
(B) 5 years and 4 months (Approx.)
(C) 4 years and 7 months (Approx.)
(D) 5 years and 7 months (Approx.)

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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