Question

Rank the projects from the following data according to Pay Back Period Method . Initial investment required for the project A =Rs 2, 00,000 , Initial investment required for the project B =Rs 2, 50,000 Net profits before tax and after depreciation are as follow Year Project A Project B 1st Rs 100,000 Rs 1,20,000 2nd Rs 70,000 Rs1,00,000 3rd Rs 45,000 Rs 90,000 4 th Rs 90,000 Rs 95,000 5 Rs 70,000 Rs 75,000

Answer 1

Explanation:

Rank the projects from the following data according to Pay Back Period Method . Initial investment required for the project A =Rs 2, 00,000 , Initial investment required for the project B =Rs 2, 50,000 Net profits before tax and after depreciation are as follow Year Project A Project B 1st Rs 100,000 Rs 1,20,000 2nd Rs 70,000 Rs1,00,000 3rd Rs 45,000 Rs 90,000 4 th Rs 90,000 Rs 95,000 5 Rs 70,000 Rs 75,000