The total investment required for two projects are estimated at OMR100, 000. The cash flows expected from the two projects for the first four years are explained in the table below. Year Project A Year 1 25,000 Year 2 38,500 Year 3 42,000 Year 4 48,000 What will be pay back period? a. 2.86 b. 3.23 c. 3.03 d. 2.63 e. All the options are wrong

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
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The total investment required for two projects are estimated at OMR100, 000. The cash flows expected from the two projects for the first four years are explained in the table below.

Year Project A

Year 1 25,000

Year 2 38,500

Year 3 42,000

Year 4 48,000
What will be pay back period?


a.
2.86


b.
3.23


c.
3.03


d.
2.63


e.
All the options are wrong

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