Question

What is the project’s payback period? immediate cash investment of Rs. 500,000 and Rs. 800,000 in year 1.The after-tax cash inflows will be Rs. 150,000, Rs. 200,000 and Rs. 250,000 for year 2, 3 and 4 respectively. Afterwards, there will be a cash inflow of Rs. 300,000 each year from year 5 to year 10.