Answer:
(f)None
Explanation:
Pay back period is the no of years in which cost of investment is recovered in the form of cash flow.
Project with cash back period of two years is acceptable .
Project 1
initial outlay of fund = 100 million dollar
cash flow in first two years = 50+50 = 100 million dollar
so it is acceptable because it recovers the project cost in first two years .
Project 2
initial outlay of fund = 80 million dollar
cash flow in first two years = 40+45 = 95
so it is acceptable because it recovers the project cost in first two years .
Project 3
initial outlay of fund = 70 million dollar
cash flow in first two years = 30+40 = 70
so it is acceptable because it recovers the project cost in first two years .
Project 4
initial outlay of fund = 60 million dollar
cash flow in first two years = 30+40 = 70
so it is acceptable because it recovers the project cost in first two years .
Project 5
initial outlay of fund = 50 million dollar
cash flow in first two years = 30+25 = 55
so it is acceptable because it recovers the project cost in first two years .
So none will be rejected
