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Rakesh Ltd. is considering investing in one of four projects for which an analyst has calculated payback period reciprocal’ as 25%, 40%, 50% & 75% respectively for Project P, Q, R & S. Which project will be selected on ‘payback period’ method of capital budgeting?

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Rakesh Ltd. is considering investing in one of four projects for which an analyst has calculated payback period reciprocal’ as 25%, 40%, 50% & 75% respectively for Project P, Q, R & S. Which project will be selected on ‘payback period’ method of capital budgeting?






 
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