A project costs Rs50,000 and will yield annual cash inflows of Rs20,000 for 5years. Calculate its payback period.

Related MCQs

• If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
• A project requires an investment of Rs500000and has scrape value of Rs.20000 after five years. It is expected to yield profits after depreciation and taxes during the five years amounting to Rs.40000,Rs60000, Rs.50000,Rs70000 and Rs20000.What is the average rate of return on the investment?
• Payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as
• The net cash flows of the project and their present values are as follows Year 1 2 3 4 Net cash flow (Rs) 5100 5100 5100 7100 PVIF @12% 0.893 0.797 0.712 0.636 Present Value (Rs) 4554 4065 3631 4516 The initial investment in the project is Rs12500, What is the NPV of the project?
• Which of the following is true regarding the measurement of cash inflows and out flows of a project?
• The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called
• The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• Cash Inflows from a project include:
• In IRR , the cash inflows are assumed to be reinvested in the project at
• A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .