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A company requires a machinery that costs RO.5,000. The machinery is expected to generate cash inflow of RO.1,500 each year for the next five periods.

A company requires a machinery that costs RO.5,000. The machinery is expected to generate cash inflow of RO.1,500 each year for the next five periods. The discount rate is 5%. Calculate the Discounted Payback period.

a.

3 Years and 1 Months

b.

3 Years and 8 Months

c.

None of the options

d.

3 Years and 2 Months

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