You are on page 1of 1

Numerical problems on Pay Back Period

1. A project costs Rs.2, 00,000 and yields annual cash inflow of Rs.30, 000 for
10 years calculate its pay-back period.
2.A project cost Rs. 5, 00,000 and yields annually a profit of Rs.80, 000 after
depreciation @ 12% p.a. but before tax of 50%. Calculate the payback period.
3. A project costs Rs.5, 00,000 and yields annual cash inflow of Rs.60, 000 for
10 years calculate its pay-back period.
4. A project cost Rs. 6, 00,000 and yields annually a profit of Rs.80, 000 after
depreciation @ 10% p.a. but before tax of 50%. Calculate the payback period.
5. Define Capital Budgeting. Mention the capital Budgeting decisions criteria.

You might also like