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P11-20 (similar to) (Discounted payback period) Glos Restaurants consiruring a project with the following expected cash flow
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Answer #1

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS 3.5 years

Year Cashflows Discounted CFs Cumulative DCFs
0 -₹ 240.00 -₹ 240.00 -₹ 240.00
1 ₹ 95.00 ₹ 84.07 -₹ 155.93
2 ₹ 72.00 ₹ 56.39 -₹ 99.54
3 ₹ 95.00 ₹ 65.84 -₹ 33.70
4 ₹ 110.00 ₹ 67.47 ₹ 33.76

Hence,

DPBP = 3 years + (33.70/67.47) = 3.5 years

I hope this solves your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

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