Solved

The Directors of Ovoid Pendragon Limited Are Currently Appraising a Proposed

Question 22

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents