GATE 2026 Chemical Engineering, Q46 · Plant Economics
The correct answer is B, 8.
Question
In a certain project, 15% of the total investment is the working capital. The minimum acceptable rate of return is 4.95% and the period of evaluation is 15 years. Which one of the following is the maximum acceptable project payback period (in years)?
Official answer: 8
Why
GATE 2026 official key: (B). With 15% working capital and a 4.95% minimum rate of return over 15 years, the discounted payback criterion yields a maximum acceptable payback of about 8 years.
Explanation cross-checked for consistency. Final answer matches the official IIT answer key.