XYZ Ltd. has two options for investment with the following Cash Flow pattern. As a finance manager

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XYZ Ltd. has two options for investment with the following Cash Flow pattern. As a finance manager you are required to the best project on the basis of Payback Period.

Particulars Project 1 (`) Project 2 (`)

Initial investment 50, 000 50, 000 Estimated annual Cash Inflows after tax:

Year 1 5,000 6,000 Year 2 9,000 10,000 Year 3 14,000 15,000 Year 4 17,000 19,000 Year 5 20,000 24,000 Year 6 22,000 26,000

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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