The directors of Ovoid Pendragon Limited are currently appraising a proposed investment which will involve a cash outflow at time 0 of £132 000.The projected cash inflow arising from the project in year 1 is £36 000.This is expected to increase at a compound rate of 10% in years 2 to 4. What is the payback period of the project to the nearest month?
A) 3 years and 4 months
B) 3 years and 9 months
C) 3 years and 3 months
D) 3 years and 2 months
Correct Answer:
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