Question

A firm can invest Rs.5,00,000 in maximum 2 of the following projects. Use Discounted Payback criteria...

A firm can invest Rs.5,00,000 in maximum 2 of the following projects. Use Discounted Payback criteria and another most suitable criteria (justify the choice in two lines) to choose the best two. Your firm's WACOC is 15% p.a.

Project

0

1

2

3

4

A

-2,50,000

0

0

+1,30,000

+ 1,80,000

B

-2,50,000

+1,30,000

+1,80,000

0

0

C

-1,90,000

+ 30,000

+ 40,000

+ 80,000

+ 1,00,000
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