urgent solution for payback period

Submitted by Rashmi dr on Fri, 06/21/2013 - 04:09

Cost of prj -575000, expected inflows is 25000 for quarter - next first two yrs. and 75,000 per quarter thereafter. what is pay back period ?

1)39 months
2)40 months
3) 41 months
4) 38 months

HI PMP's

PLz help me out to solve this prb... if u have similar kinds of prb related NPV, IRR and payback periods... kindly share with me...

Reg,
Rashmi

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2deepak

Fri, 06/21/2013 - 06:17

 A - 39 months?

sandeshkd

Fri, 06/21/2013 - 07:40

Cost of Project = 575000

1 Quarter = 3 months

4 Quarters = 1 year

Cash Flow first 2 years = 25000 * 4 * 2 = 200000

Cash Flow thereafter per quarter = 75000

assuming x is the number of qaurters for which 75000 is the cash flow

 

575000 = 200000 + 75000x

x = 375000/75000

x = 5

Hence total payback period = 2 yrs + 5 quarters = 24 months + 15 months = 39 months

cnppmp's picture

cnppmp

Fri, 06/21/2013 - 10:14

Good explanation.


sure it is 39 months.


Regards


CN Patil

sanskrit

Fri, 06/21/2013 - 13:09

Concur

Rashmi dr

Sat, 06/22/2013 - 07:35

thanks a lot

jvleminc's picture

jvleminc

Thu, 07/04/2013 - 04:08

575.000 = 25.000 *8Q + 75.000 *5Q => 13Q => 39 months