Question

LMN Ltd. is planning to purchase a machine. Purchase price is Rs. 4,00,000. Estimated

cash flow is Rs. 1,50,000 p.a. Useful life of the machine is 5 years. The payback period

is ____.​

Answer 1

150000*3 = 450000

we neeed 4lkhs

150000*2 = 300000

balance will be 100000

then per moth value is 12500 i.e 150000/12

and to get one lakh it'll take #8 months time so the

payback period will be

#2yrs &8mnths