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  • Accounting and Finance for Bankers - 3 (JAIIB)
  • A project requires an initial investment of Rs. 20,000 wi...
Multiple choice

A project requires an initial investment of Rs. 20,000 with annual cashflow of Rs. 4,000. Compute the pay-back period.

  1. 5 years

  2. 9 years

  3. 10 years

  4. 16 years

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Pay-back period = 20,000/4,000, i.e. 5 years. 

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