Question

d) Select a project on the basis of following information using payback period criteria. The initial capital outlay of project A is Rs. 1,00,000 and B is also Rs. 1,00,000. The expected annual cash inflow are as follows: Year Annual cash Annual cash inflows inflows of project A(Rs.) project B(Rs.) 1 20,000 50,000 2 25.000 45,000 3 35,000 40,000 4 40,000 30,000 5 50,000 10,000​

Answer 1

Step-by-step explanation:

project on the basis of following information using payback period criteria. The initial capital outlay of project A is Rs. 1,00,000 and B is also Rs. 1,00,000. The expected annual cash inflow are as follows: Year Annual cash Annual cash inflows inflows of project A(Rs.) project B(Rs.) 1 20,000 50,000 2 25.000 45,000 3 35,000 40,000 4 40,000 30,000 5 50,000 10,000