Mohan Pizza Ltd. is considering purchasing of a Pizza Oven. The expected purchase price is ₹2,70,000, expected annual revenues from the oven is ₹1,50,000, and expected annual costs are ₹90,000, including ₹22,500 of depre
CS Executive · Financial and Strategic Management · PYQS · June 2021
Mohan Pizza Ltd. is considering purchasing of a Pizza Oven. The expected purchase price is ₹2,70,000, expected annual revenues from the oven is ₹1,50,000, and expected annual costs are ₹90,000, including ₹22,500 of depreciation. The investment has a payback period of approximately :
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Capital Budgeting
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