Year Plane A 

Plane B

0 50 lakhs  45 Lakhs 

1 7  8
2 8 8
3 8.5 12
4 9 12
5 9 14
6  11 15
7 12 -
8 12.5 -

Year Plane A 
PVIF(15%,n) PV CF
0 50 1 50
1 7 0.869565217391304 6.086957
2 8 0.756143667296787 6.049149
3 8.5 0.657516232431988 5.588888
4 9 0.571753245593033 5.145779
5 9 0.49717673529829 4.474591
6 11 0.432327595911556 4.755604
7 12 0.375937039923093 4.511244
8 12.5 0.326901773846168 4.086272
Plane A Sum 90.69848
PVIFA(15%,8) 4.487
Annual Capital Charge 20.21361

Year Plane B  PVIF(15%,n) PV CF

0 45 1 45
1 8 0.869565217391304 6.956522
2 8 0.756143667296787 6.049149
3 12 0.657516232431988 7.890195
4 12 0.571753245593033 6.861039
5 14 0.49717673529829 6.960474
6 15 0.432327595911556 6.484914
7
8
Sum 86.20229
PVIF(15%,6) 3.352
Annual Capital Charge 25.71667
Yr CF Cumulative Value
0 -20000 -20000
1 8000 -12000
2 7000 -5000
3 4000 -1000
4 3000 2000 Pay Back =3 years +(1000/300)*12
5 3000 5000 4 months
3 years 4 months
Ko 15%
Yr CF PVIF@15% Cumulative Value
0 -20000 -20000 -20000
1 8000 6956.521739 -13043.4782608696
2 7000 5293.005671 -7750.47258979206
3 4000 2630.06493 -5120.40766006411
4 3000 1715.259737 -3405.14792328501
5 3000 1491.530206 -1913.61771739014

Here the payback is more than 5 years