//Exa 4 clc; clear; close; //given data : inINV=100000;//initial investment in Rs. and equal for all projects //Project A : cash in flows of 1st,2nd,3rd,4th and 5th years CIF1=30000;//in Rs. CIF2=30000;//in Rs. CIF3=30000;//in Rs. CIF4=30000;//in Rs. CIF5=30000;//in Rs. //Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years CumCIF1=30000;//in Rs. CumCIF2=60000;//in Rs. CumCIF3=90000;//in Rs. CumCIF4=120000;//in Rs. CumCIF5=150000;//in Rs. disp("In the table it can be seen that in 3 years 90000 Rs has been recovered, Rs. 10000 is left out of initial investment.") disp("Payback period is between 3 and 4 years.") E=3; B=100000-90000;//remaining balance to be recovered C=30000;//cash flow of last payback year PaybackPeriod=E+B/C; disp(PaybackPeriod,"Payback period of the project A(in years) is : "); //Project B : cash in flows of 1st,2nd,3rd,4th and 5th years CIF1=30000;//in Rs. CIF2=40000;//in Rs. CIF3=20000;//in Rs. CIF4=10000;//in Rs. CIF5=5000;//in Rs. //Project B : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years CumCIF1=30000;//in Rs. CumCIF2=70000;//in Rs. CumCIF3=90000;//in Rs. CumCIF4=100000;//in Rs. CumCIF5=105000;//in Rs. disp("In the table it can be seen that in complete 4 years 100000 Rs has been recovered.") disp(4,"Payback period of the project B(in years) is : "); //Project C : cash in flows of 1st,2nd,3rd,4th and 5th years CIF1=40000;//in Rs. CIF2=20000;//in Rs. CIF3=30000;//in Rs. CIF4=40000;//in Rs. CIF5=10000;//in Rs. //Project C : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years CumCIF1=40000;//in Rs. CumCIF2=60000;//in Rs. CumCIF3=90000;//in Rs. CumCIF4=130000;//in Rs. CumCIF5=140000;//in Rs. disp("In the table it can be seen that in 3 years 90000 Rs has been recovered, Rs. 10000 is left out of initial investment.") disp("Payback period is between 3 and 4 years.") E=3; B=100000-90000;//remaining balance to be recovered C=40000;//cash flow of last payback year PaybackPeriod=E+B/C; disp(PaybackPeriod,"Payback period of the project C(in years) is : "); //final conclusion disp("As all the projects have payback period of less than 5 years and 5 years is the standard payback period, all the three projects are acceptable.")