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A firm invested cash Rs.5,500,000 on a project. It is forecasted that following cash flow will generate by this project in coming 5 years. Firm

A firm invested cash Rs.5,500,000 on a project. It is forecasted that following cash flow will generate by this project in coming 5 years. Firm cost of capital is 18%. Tax rate is 35%

Year EBITDA
1 1,100,000
2 900,000
3 1,050,000
4 4,000,000
5 2,000,000

Evaluate the project by below mentioned methods and report the conclusion.

Calculate Discounted Payback Period

A.

It's less than 4-years

B.

It's equal to the Payback Period.

C.

It's more than 5-years

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